Stamford on Wednesday will issue about $19 million of water pollution control revenue bonds that will help finance a sludge-drying system and numerous infrastructure improvements.
Banc of America Securities LLC is the underwriter and Robinson & Cole LLP is bond counsel. Webster Bank is the financial adviser.
Standard & Poor’s rates the deal AA-plus and Moody’s Investors Service rates it Aa3. Fitch Ratings does not rate the credit.
The sludge-drying system will receive $15 million of the bond proceeds. Sludge comes from treated sewage and when dried can be used a fertilizer or an energy source. The remaining funds will go towards sewer extensions, pumping-station improvements, and laboratory equipment upgrades at Stamford’s Water Pollution Control Authority, according to Benjamin Barnes, director of administration for the city.
Barnes said that the city would not issue debt again this year or the next. Wednesday’s sale “will bring us through the next foreseeable round of capital improvements,” he said.
Stamford sold $59 million of general obligation debt in February. The city has an outstanding GO debt of roughly $325.5 million, Barnes said.
The city has an estimated 2005 population of 120,000, according to the census figures. Stamford is 25 miles northeast of New York City, along Connecticut’s shoreline.
