The Town of Enfield completed its general obligation bond and bond anticipation note pricing, which will fund $40 million of projects previously approved by our voters. The projects include the renovation of John F. Kennedy Middle School, the renovation of Enfield High School, the Roads 2015 projects, and Water Pollution Control Facility upgrades.
The Town received competitive bids from twelve underwriters for the bonds and seven underwriters for the bond anticipation notes. The winning bid for the bonds, which have a final maturity in 20 years, was true interest cost of 2.312% as compared to the 2018 rate of 2.998%. The one-year notes were issued with net interest cost of 1.221%, as compared to a 2018 rate of 1.698%. We anticipate that these lower interest rates will save the town significant money in interest payments over the next 20 years.
Enfield’s financial position was recently affirmed by S&P Global Ratings with a rating of “AA” on the upcoming 2019 General Obligation Bonds and an “AA” long term rating on the Town’s general obligation debt outstanding. The bond anticipation notes were rated at SP-1+. The Ratings Direct Summary by S&P Global stated: “…we believe the Town's budgetary performance will remain strong given its historically balanced operating results, estimated surplus in fiscal 2019, and conservative budgeting assumptions for fiscal 2020 amid a more stable state budgetary environment.”
These excellent rates reflect the Town’s strong financial position and demonstrate investor confidence in the Town of Enfield.