FIRST SELECTMAN AND TOWN TREASURER ANNOUNCE ADDITIONAL COST SAVING MEASURES
Cost containment will go a long way towards easing the taxpayer’s burden
TRUMBULL - - Last week, the Town of Trumbull successfully completed the sale of $23,310,000 of 1 year Bond Anticipation Notes and $22,000,000 of General Obligation Bonds. The sale was completed after the Town secured excellent credit ratings from all 3 credit rating agencies: Moody’s (Aa2), Standard & Poor’s (AA) and Fitch (AA+). The proceeds from the sale will be used almost exclusively to fund sewer construction projects and the “like new” renovation of Trumbull High School. The interest rate composite on the 20 year Bonds will be 2.73%. This is the lowest rate received by any Connecticut community selling 20 year bonds thus far in 2010. This will represent a savings of $217,000 in this one area alone. First Selectman Timothy M. Herbst said Wednesday that these cost savings will help produce a budget that comes in lower than anticipated. “Any surplus will go a long way towards helping us in preparing our budget next year. While we continue to weather a tough economy, these cost saving measures will go a long way towards preserving the Town’s financial health and easing the taxpayer’s burden.”
Town Treasurer John Ponzio also exuded enthusiasm and confidence about the Town’s recent credit rating and savings obtained by historically low interest rates. “The sale of these notes demonstrates the excellent financial health of the Town combined with the continuing decline in interest rates in these difficult economic times. Our credit ratings are a key to the financial stability for Trumbull and the fact that all 3 agencies feel that Trumbull’s future is very bright demonstrates that we must continue to be wise with our spending while pursuing expansion of our grand list”.
In addition, the Town of Trumbull recently selected a new insurance agent/broker of record. The Town recently retained Merit Insurance of Bridgeport, Connecticut. Merit specializes in municipal insurance. The competitive bid process generated a $275,000 savings to the Town of Trumbull, roughly 30% less than the old policies. The new program will also save additional monies since lower deductibles and some coverage enhancements were put in place. The town also negotiated a three year rate guarantee.
The First Selectman offered thanks to the Town’s new insurance brokers for their hard work on behalf of the Town. “We appreciate the help of our insurance broker of record in assisting the Town in reducing our insurance costs. Achieving cost containment while maintaining the vital services our citizens expect is the key to running a great community. We will continue to be innovative in pursuing additional cost saving measures.”