Work, Funding on New High School Progressing

While officials, teachers, parents, and children are looking forward to the start of a new school year in a few weeks, everyone also seems to have thoughts about 2015.

September 2015 is, if everything goes according to schedule, when the new Guilford High School will open.

First Selectman Joseph Mazza said, "Work on the new high school is going well. We are on schedule and within budget."

Recently the Town of Guilford sold $26 million of 20-year general obligation bonds. Proceeds from the bonds will be used to fund construction of the new high school.

The bonds were purchased by Robert W. Baird & Co. at an effective rate of 2.957 percent. The town received a total of eight bids from national and regional broker/dealers firms.

According to Mazza, Guilford benefited from the timing of the sale as municipal bonds and notes have enjoyed a strong 2014 driven by investor demand as municipal debt issuance is down 10 percent year to date. The reduced new issue supply is providing buoyancy to bond prices.

Municipal bond prices and bond yields have an inverse relationship; when prices go up, yields go down, Mazza said.

The strong interest in the town's debt is a reflection of the town's bond ratings of "Aa2" from Moody's Investors Service and "AA+" from Fitch Rating Services, said the first selectmen. In its report, Moody's noted the town's "conservative financial management practices" and "stable economy benefiting from above-average wealth levels and coastal location" as credit strengths.

READER COMMENTS

Loading comments...
Hide Comments