The results were even better than expected. Last week the town went out into the bond market to refinance $9.2 million in existing bonds. The expectation was that the move would save taxpayers approximately $600,000 in interest costs over the next 15 years. In fact, the decision saved taxpayers almost $862,000.

In September the Board of Selectmen and then the Board of Finance consulted with the town's bond advisors, looked at the numbers, and decided to try a refinance of some of the town's outstanding bonds. It is practice that the town has done in the past and it has seen great success. The savings have been substantial. The refinancing takes advantage of current, record-low interest rates.

In this latest round, Madison received the final prices on the refinancing of $9.2 million in town bonds at midweek last week.

"We were anticipating a total savings of around $600,000, but we were very pleasantly surprised that it is considerably more than that, at $861,958. Over half of the savings occur in the next six years," First Selectman Fillmore McPherson said. "This is a huge amount, and represents 8.67 percent net present value saving. Anything over two percent is considered acceptable, so we are more than four times that level."

McPherson attributed the hefty savings partly to the town's diligence in maintaining its AAA bond rating-"This is one of the pleasant payoffs for keeping our fiscal house in good order."

In this economic climate, where interest rates are among the lowest municipalities have seen in years, McPherson was once again hoping to "save the town a bunch of money" by refinancing a portion of the town's bonded debt when he recommended it in September.

The town's bond advisor, IBIC, proposed a refinance of a portion of existing bonds. This included $2,455,000 for debt service on the town campus and the police headquarters building, $1,065,000 as a portion of the debt incurred with Rockland Preserve, and $6,225,000 of debt for Constitution Park.

Although the town had not gone out into the market in September, IBIC provided the Board of Finance with an example of possible savings, which were spread across 18 years. Annual cash flow savings were expected to range from a low of about $16,000 to a high of $72,000. The net cash flow savings realized over the term of the bond issue were estimated to total $607,585.

Instead, at $861,958, the news was even better. McPherson had said in September, when talking with the finance board, that he expected to see some savings from the refinance within the present fiscal year.

"Once we have final numbers I will be back before this board to request that we again apply any savings to our debt service reserve so that we further smooth debt service payment increases," McPherson said.

Funds in the debt service reserve are applied to debt service payments each year as the finance board puts together its budget.