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Revere to issue $75 million in short-term notes for new high school; MSBA reimbursements expected later this year
Summary
CFO Rich Vasquez told the subcommittee the city will borrow $75 million in temporary bond notes to pay for progress on the new high school while the project remains in design and state reimbursements from the Massachusetts School Building Authority are queued; the school building committee reduced the project estimate by $10 million.
Revere City plans to issue $75 million in temporary bond notes to finance early construction costs for the new high school, CFO Rich Vasquez said during the budget hearing on June 5. The borrowing is short-term financing intended to fund work in advance of the city's full permanent bond sale and MSBA reimbursements.
Vasquez told the committee, "The city is about to borrow $75,000,000, in temporary bond notes to, begin payments of the high school construction. Right now, it's in the design and development stage." He emphasized the notes are temporary and will be refinanced when the full bond is issued after construction is complete.
Why it matters: the new high school represents the largest single capital program tied to the FY2026 debt outlook. The city said the school building committee recently reduced the estimated project cost from $493 million to $483 million, a $10 million reduction the administration called a "step" toward affordability. Short-term borrowing allows construction to proceed while the Massachusetts School Building Authority (MSBA) processes reimbursement requests.
Reimbursements and timing: city officials said MSBA has allowed invoice queuing and the administration expects to begin receiving reimbursement around October, subject to the MSBA and the completion of environmental and permitting steps. During the hearing, the chair and mayor clarified that the temporary borrowing is not for general operating needs and that the $75 million is specifically to fund high-school construction cash flow needs.
Other capital notes in the presentation included a planned McKinley renovation to provide early childhood space and the relocation of the 911 call center; the administration also said revenue from grants and reimbursements will be applied when received.
Ending: The short-term borrowing will appear as temporary debt in FY2026; the administration expects to convert short-term notes to long-term bonds after construction and MSBA reimbursements proceed.
