Danbury Secures Favorable Bond Sale As Financial Stability Strengthens

DANBURY, CT — The City of Danbury has completed its 2023 financial audit, reaffirmed its AA+ credit ratings from both S&P and Fitch, and successfully sold over $191 million in bonds and notes at favorable interest rates, Mayor Roberto L. Alves announced Friday.

The city’s $36.5 million in General Obligation Bonds and $155.25 million in Bond Anticipation Notes (BANs) were sold at competitive rates, reflecting growing confidence in Danbury’s financial trajectory. The BANs, secured by JP Morgan, carried a net interest cost (NIC) of 2.809 percent, while Janney Montgomery Scott acquired the bonds at a true interest cost (TIC) of 3.457 percent—both figures coming in below the city’s target.

“These achievements are a direct result of the responsible investments we’ve put into our Finance Department over the past 14 months,” Alves said in a news release. “When I took office, the 2023 audit was overdue, and the 2022 audit hadn’t even started. We were under state watch, and I committed to getting us out of this situation.”

Alves bolstered the city’s financial team early in 2024 by hiring an Assistant Finance Director, filling vacant positions in grants and accounting, and enlisting the firm CLA to manage audits and internal software upgrades. The city has since completed its 2022 and 2023 audits and has already begun preparations for the 2024 audit, due in December.

The bond and note sales will help finance major city projects, including the Danbury Career Academy, wastewater and water system upgrades, and public safety and infrastructure improvements. The bonds primarily fund completed work on the Career Academy and wastewater treatment upgrades, while the notes will support ongoing and planned projects.

Matt Spoerndle, a financial consultant with Phoenix Advisors, praised the city's fiscal progress. “The results from today’s sale were not only strong historically for the city but also from a statewide perspective. Wall Street investment banks and rating agencies clearly have confidence in Danbury’s leadership and financial direction,” he said.

Alves emphasized that while the city has made significant financial strides, work remains. “We can celebrate our successes today, but the train is still moving full speed ahead,” he said.