Winchester approves $8 million second tranche of 2022 road bond

Winchester — The Board of Selectmen unanimously authorized the town manager and the director of finance on April 23 to proceed with an $8,000,000 bond issuance as tranche two of the $23,300,000 road and bridge referendum voters approved in April 2022.

Town Manager Paul Harrington told the board the town previously borrowed $6,000,000 from the referendum funds to start roads, sidewalks and drainage work and now recommends borrowing an additional $8,000,000 to continue those projects. Harrington said cash spent on bond projects through March 31, 2025 was just over $4.7 million and that anticipated project spending from April 1, 2025 through June 30, 2026 totals roughly $3.23 million, leading to the $8 million recommendation.

Why it matters: the tranche will fund continuing road and drainage projects that have already progressed, but it also increases future debt-service obligations for the town. Harrington and Finance Director Ann Marie described the expected near-term payment schedule and revenue impacts so the board could weigh timing and budget choices.

Key details and fiscal effects - The $8,000,000 would be drawn from the $23,300,000 referendum voters approved in April 2022; the town previously borrowed roughly $6,000,000 from that authorization. - Cash expenditures on bonded projects through 03/31/2025 were reported at just over $4,700,000; anticipated needs through 06/30/2026 were presented as approximately $3,233,000. - Finance Director Ann Marie said the prior bond issuance generated a premium of about $785,000–$786,000 in April 2023; premium funds are commonly used to offset debt service. - Harrington said the town expects to issue the debt as early as July (subject to market conditions), and staff estimated a conservative interest-rate projection of about 4% (noting market uncertainty and a possible range of roughly 3.5%–4.25%). - If issued, the town would record a small interest-only payment due roughly six months after borrowing (shown as due January 2026 if borrowing occurs in early July), followed by interest-plus-principal payments beginning in fiscal 2027 (payment on or after 07/01/2027).

Board action and next steps A motion to "authorize the town manager and director of finance to proceed with a $8,000,000 bond issue in accordance with the road and bridge infrastructure bond as approved at referendum in April 2022" was moved and seconded on the record and carried unanimously. Staff said they would begin the paperwork immediately, initiate a ratings call with analysts and work with bond counsel to set timing and final terms based on market conditions.

The board did not set a final interest rate in the meeting; bond counsel and underwriters will finalize pricing and schedule once staff complete the issuance steps.

Ending With the vote, Winchester staff will proceed toward a summer issuance; board members and staff said they will return with final pricing and any budget adjustments needed to cover the related debt service in upcoming fiscal-year documents.