Oxford First Selectman George Temple announced the town had a savings of $1.43 million from refinancing a portion of its outstanding debt.
In a news release, Temple said he was very pleased with the results as the refinancing represents a savings of more than $100 for every resident in town and praised the hard work of Finance Director James Hliva.
“Jim Hliva was instrumental in taking a proactive position on re-financing. I appreciate his initiative and ‘can do’ attitude. The people of Oxford owe him a debt of thanks,’’ said Temple, who has recommended that Hliva get a 12 percent raise this year and defended that action at a
The debt savings will begin on July 1 and will continue on an annual basis until 2029. In next year’s operating budget, the savings will be $109,145. The majority of the debt that was refinanced was for the construction of , which opened in 2007.
Hliva and Temple led the refinancing charge and were assisted by Mark Chapman of Independent Bond and Joseph Fasi of the law firm Fasi Law.
The firm Roosevelt and Cross of New York City purchased the bonds. Hliva said when he spoke with Roosevelt and Cross on Tuesday afternoon, the firm said it had already begun to market the bonds to investors and were having very positive results, according to the news release from Temple’s office.
The refinancing of the bonds, which is also called a refunding, is comparable to residents refinancing their home mortgage, but is done in the bond market versus homeowner going to their personal lending institutions, the release states.
Hliva said the present value savings was 9.4 percent, which was excellent. He said anything in excess of 3 percent is good, and that Oxford far exceeded the 3 percent mark.
On Monday, . An Aa rating is the second best rating given by Moody’s. Obligations rated Aa are judged to be of high quality and are subject to very low credit risk. The modifier 2 indicates a mid-range ranking.