Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Investments And Bonding topic
No spam. Unsubscribe anytime.
Simsbury locks $45 million in short-term CDs, S&P reaffirms AAA ahead of bond sale
Summary
Finance Director Amy told the Board of Finance the town invested about $45 million across 3-, 6- and 9‑month certificates of deposit at roughly 4% and will proceed with a bond sale after S&P reaffirmed a AAA rating.
Simsbury's finance director reported the town invested about $45 million in short-term certificates of deposit and that Standard & Poor's reaffirmed the town's triple‑A credit rating before a scheduled bond sale.
Finance Director Amy told the Board of Finance on Sept. 16 that the town purchased three CDs with staggered maturities to capture current yields: a 3‑month CD at 4.29 percent, a 6‑month at 4.07 percent and a 9‑month at 3.83 percent. "We were able to invest about $45,000,000 in the CDs," she said.
Why it matters: the higher yields relative to the budgeted rate will increase investment income in the current fiscal year and reduce the pressure on other revenue streams. Amy noted the board had budgeted at a rate of 3.75 percent; actual short-term yields already exceed that assumption.
Bond sale and rating
Amy said the town's official statement for the bond sale was in the meeting packet and that the S&P call went well; S&P reaffirmed the town's triple‑A rating ahead of the sale. The board and staff said they would report back to the board after the sale with the final pricing.
Revenues, early projections and cash management
On revenues through August, Amy reported early-year timing differences drive most variances and noted higher-than-budgeted conveyance fees and an unbudgeted insurance reimbursement of roughly $58,000. She described an initial projected surplus in the early-year reporting and said a more solid projection would await the municipal supplemental motor vehicle collections and the close of the first quarter.
What the board asked and next steps
Board members asked about tax collection pacing and the finance director said July collections were at roughly the same percentage as last year (about 53–54 percent) and August collections were minimal. Amy said she will update investment and revenue projections after the bond sale and the close of the next reporting period.
No formal vote was taken on the investments or the bond sale during the meeting; the bond sale was scheduled to occur the day after the meeting.
