Politics & Government

Town Sells $22 Million in Bonds at 3.05 Percent Interest Rate

The lower-than-expected interest rate of 3.05 percent means the town will save an estimated $170,000

The Town of Riverhead sold $22 million in bonds on Tuesday at a lower-than-expected interest rate of 3.05 percent, the town announced.

The town budgeted for a 4 percent interest rate in 2012, meaning the lower interest rate will save the town $120,000 from the general fund, Town Supervisor Sean Walter said. He also said the low rate would save an additional $50,000 to $60,000 from the highway and water districts combined.

"We got a fantastic rate at 3.05 percent," Walter said. "I was hoping 3.5 percent,  so it's really a testament to the new financial direction the town is in."

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The low interest rate was partially due to , "Aa2," last week. The credit rating is a sign that the town government is financially stable and makes it easier for the town to fund itself at a lower cost, the town said on Nov. 23. 

The bonds were for various projects around town that had been unfunded under previous administrations, Walter said.

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Of the $22 million, Walter said between $18 to 20 million was debt from the previous administration, with the rest being bonds for 

Walter said he was glad to see the bonds successfully sold, saying it had been a major concern for his administration.

"I've been dreading from the day I got elected and I heard that we needed to sell the bonds," he said. "I'm just so happy. We've done a lot in the past few years."

The bonds were sold to Roosevelt & Cross, a municipal bond broker-dealer that Walter said will market the bonds to be sold in smaller markets.


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