BRIDGEPORT, Conn. — The city recently completed a pension bond sale, raising $96 million to help pay down long-term unfunded pension liability covering retirement costs for current and former police officers and firefighters.
Announcing the move Thursday, Mayor Joe Ganim said the measure will save city taxpayers about $2 million in net debt service payments each year over the next 26 years.
“Selling these bonds empowers the city of Bridgeport to eliminate a major piece of unfunded pension liability in a way that is saving taxpayers millions of dollars — a win-win!’ the mayor said in a written statement.
Calling the measure “outside the box thinking,” Ganim said the bond sale was made possible through special legislation sponsored by the Bridgeport delegation in the General Assembly.
The city was then able to issue taxable bonds to pay off more than $200 million in unfunded pension liability. The City Council approved the sale in August.
“Any action we take that moves Bridgeport another step towards better financial footing is worthwhile and this sale is a major accomplishment for our beleaguered city taxpayers,” said state Rep. Ezequiel Santiago.
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