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Committee clears three appropriations repurposing unexpended bond proceeds including $2.86M from old Canal Street authorization
Summary
The committee recommended three orders to repurpose unexpended bond proceeds — $50,000 for completed CIP items, $91,236.71 for First Swampscott Road work and $2,861,344.99 from a 2013 Canal Street authorization — and discussed legal requirements to close old bond proceeds.
The Committee on Administration and Finance voted to recommend three separate orders that repurpose unexpended bond proceeds tied to completed projects, including a large balance from a 2013 Canal Street authorization.
Chair Merkel introduced three appropriation orders. The first would appropriate $50,000 of unexpended funds to close out specified completed CIP projects (including payment to recreational golf cart paths and Mansfield Field renovation costs). The second would appropriate $91,236.71 of unexpended funds relative to First Swampscott Road intersection improvements. The third order would appropriate $2,861,344.99 of unexpended funds from the Canal Street Utility Program (an authorization dating to 2013) for reallocation.
Finance Director Anna Friedman explained that bond proceeds must be released and repurposed once a project is complete because tax‑exempt municipal bond proceeds cannot be held indefinitely; the specific order language is required by bond counsel to close the 2013 authorization so the funds can be used for current projects. She said repurposing the proceeds does not prevent new authorizations in the future for Canal Street‑related work, but the city must address aged proceeds to avoid potential IRS or bond‑counsel issues.
Councillors voted to recommend all three appropriation orders to the full council with positive recommendations. The items will appear on the City Council agenda for final action.
