The Day – Norwich voters approve $ 145 million pension debt bond
Norwich – Voters on Tuesday overwhelmingly approved a plan to guarantee the full debt of the $ 145 million pension bonds, a measure estimated to save around $ 43 million over the 30-year lifespan of the obligation.
Final numbers were not available by the deadline, but in two of the six polling stations, yes votes totaled 1,144 to 544 votes.
City treasurer Michael Gualtieri said he was “very happy for the city” that it appears 70% of voters approved the measure.
The plan calls for bonding the debt at the current historically low borrowing rates, investing the proceeds of the bond while making payments into the pension plan, and creating a reserve account to guard against peaks and stresses. spectacular reductions in interest-generating investments.
The city currently has to budget a certain amount each year to cover a portion of the bond debt, as well as future pension contributions for current employees. This year’s budget provides $ 13.7 million for pension obligations. Investment experts have calculated that the city’s annual bond payment is expected to reduce debt by an average of more than $ 1 million per year.
Once voter approval is obtained, city officials and legal advisers will study bond interest rates to determine if rates remain low enough to make the bold step worth it. If rates are around the current level of 3%, they will look to buy the bonds by January or February.