Press Release - My Woonsocket

OFFICE OF THE MAYOR
Woonsocket, rhode island
January 9, 2015
Contact: Christine Chamberland
Director of Finance
401-767-9265
FOR IMMEDIATE RELEASE
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Mayor Baldelli-Hunt Plans Refunding Bond Issue to Save Future
Debt Service Costs
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City of Woonsocket projected to save more than $300,000 over next 5 years.
Woonsocket, RI: Woonsocket Mayor Lisa Baldelli-Hunt today announced that the City has received
preliminary approval from the Rhode Island Health and Educational Building Corporation (RIHEBC) for up to
$7.2 million in refunding bonds. The bonds, which will be issued by RIHEBC for the City, will pay-off
existing bonds that financed the construction of an elementary school and repairs to a number of City schools in
2000. The new bonds are expected to be sold at interest rates lower than the current bonds’ interest rates, which
could generate significant savings for the City projected to total more than $300,000 over the next five years.
Mayor Baldelli-Hunt said, “the City is pleased to have this opportunity. My administration has been working
diligently to lower the City’s fixed costs, such as debt service, and this is one more step in the right direction. I
commend my Finance Director, Christine Chamberland, for the work done thus far in advancing this
refunding.”
Maureen Gurghigian of FirstSouthwest, financial advisor for the bond issue said, “the City has made great
strides in the past year. Both Moody’s and Fitch, the rating agencies that rate the City’s bonds, noted the City’s
improving financial situation during their most recent annual review. The projected fiscal year 2014 results
show an operating surplus generated by both the City and the School Department, which further reduces the
accumulated deficit the City has been carrying for a number of years but is projected to be eliminated by the
next fiscal year.”
The City school refinancing will benefit from state legislation that allows communities to keep 80 percent of
any refunding savings for issues completed before the end of 2015. The proposed bond issue will be considered
for final approval by the RIHEBC board later this month.
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City Hall P.O. Box B Woonsocket, RI 02895
Telephone (401) 767-9205 Fax (401) 765-4569 E-Mail: [email protected]