Uxbridge finance committee backs using PFAS settlement money to reduce water treatment borrowing
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Summary
The town’s finance committee recommended unanimously that the special town meeting appropriate PFAS settlement receipts to cover a shortfall on the water treatment plant’s bond anticipation note, an action officials said would save interest costs and avoid rolling the BAN forward.
The Town of Uxbridge finance committee recommended favorable action on Article 2 on Thursday, endorsing the use of PFAS settlement receipts to reduce near‑term borrowing costs tied to construction of the town’s water treatment plant. Town finance staff told the committee that applying the settlement funds to the bond anticipation note (BAN) maturing Dec. 4 would avoid rolling the BAN and paying additional interest.
Town finance staff said the town has received roughly $1.2 million in PFAS settlement payments so far and that the outstanding BAN plus interest is about $1.1 million, leaving a small gap staff proposed to cover from certified return earnings. “We can appropriate from return earnings for the delta difference so we don’t have to carry this BAN another 6 to 9 months,” staff said during the hearing.
The finance director explained the state Department of Revenue permits settlements to be held in a receipts reserve appropriation account — which requires a timely appropriation — or to be treated as general fund/free cash when certified. The committee heard that placing the settlement funds into the receipts reserve and then appropriating them to retire or reduce the BAN is an allowable use and would reduce the town’s long‑term interest burden.
Committee members asked for recurring project updates; staff agreed to provide quarterly briefings on the treatment plant and other major water projects. Several members praised staff for early participation in the settlement process and noted that being an early claimant increased the town’s share of payments.
The committee voted unanimously to recommend favorable action on Article 2; the matter will go to the special town meeting Dec. 1 for final voter action.
