February 10, 2022
PRESS RELEASE – FOR IMMEDIATE RELEASE
The City of Meriden Receives High Marks on Finances
The City's strong management puts it in a secure financial position for the future
Meriden, CT – City officials announced exceptional results from refunding bonds that priced today. The
$43.78 million refunding bond issue yielded significant savings as a result of refinancing bonds originally
issued at higher rates.
“This is excellent news for the taxpayers of the City of Meriden,” said City Manager Timothy Coon, “By
refinancing these bonds, we were able to take advantage of a still-low interest rate environment. The
result is significant budgetary savings for our citizens.”
The City’s Chief Financial Officer Kevin McNabola indicated that as a result of the refinancing, the City
will lower its interest costs by over $2.9 million, the majority being realized between the 2023 and 2025
budget years. The bonds will refinance previous ones, which were originally issued in 2014. Those
bonds have reached their “call date”, or the date at which the City can refinance those bonds on a taxexempt basis. The proceeds of those issues were originally used to fund various school, sewer and
public improvement projects. Additionally, the City was able to refinance a 2011, two percent, Clean
Water Fund loan with the State of Connecticut.
Raymond James was the lead underwriter on the issue with Piper Sandler acting as a co-manager in
order to ensure the City received the best pricing on the issue. The resulting true interest cost was
1.85%, as compared to what the City has previously paid, on average, on the refinanced debt of 2.88%.
“Interest rates are rising and have been quite volatile over the last month with inflationary concerns and
expectations that the Federal Reserve is going to raise rates over this course of this year,” said Matthew
Spoerndle, senior managing director of Phoenix Advisors and Meriden’s municipal advisor.
“Fortunately, the City was able to enter the market now before rates move too much higher and lock in
close to $3 million in taxpayer savings. This is great news for the City!”
S&P Global ratings affirmed Meriden’s rating at AA, which is two steps away from the most coveted
AAA rating that the likes of Fairfield, Westport and Ridgefield possess. Within the report, S&P
referenced the City’s “strong management…supported by formalized financial policies and practices”
while also noting its “improved financial performance” and a “diverse employment base” as credit
strengths. As a result of the rating process, the City’s “outlook” from S&P was revised from “negative”
to “stable”. This was as a result of “the city's improved financial trend, including three years of audited
surpluses plus an expected surplus in fiscal 2022, resulting in increased reserves and greater financial
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