East Hampton Town sold more than $16 million in bonds last week‑$4,003,736 in general obligation bonds and $12,034,858 of bond anticipation notes–according to Len Bernard, the town’s budget manager.
The deal on the bonds closed on August 28 and proceeds will be used towards paying for a new wood grinder for the sanitation department, road repaving, the expansion of the cemetery in Amagansett on Windmill Lane, and new police cars, said Mr, Bernard.
“The wood grinder was almost $700,000, which we really needed after Sandy,” he said. “The repaving was another $150,000, and that, too, is specific to repaving roads after damage from Sandy.”
The expansion of the cemetary was roughly $600,000 and new police cars cost the town approximately $180,000.
Roosevelt and Cross, Inc. offered the lowest interest rate of the six bidders, said Mr. Bernard, of 2.15 percent. The low interest rate, said Mr. Bernard, is largely due to the town’s recent rating from Moody’s Investors Service, which was bumped from Aa3 to Aa2, the third-highest level assigned by Moody’s to municipal credits, according to a press release from the town.
“2.15 percent is really low,” said Mr. Bernard. “I think the rating definitely helped. It probably would’ve been more like 2.4 to 2.5 percent if we didn’t have the rating increase. Over time it’s a couple hundred thousand dollars in savings,” he added.
TD Securities, part of TD Bank North, was awarded the bid for the notes as the lowest bidder, providing an interest rate of .19 percent, said Mr. Bernard.
The town’s recent decision to fund two capital improvement projects at the East Hampton Airport are being funded by the notes‑$353,600 in new taxiway lighting and $270,000 in repaving the taxiway.
“Those need to be done and they should be done by the time we do another debt sale,” said Mr. Bernard. “If they’re done, we’ll look and see what we spent and go to bond with that exact amount.”