Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Finance topic
No spam. Unsubscribe anytime.
Concord advances $39.56 million bond plan; Moody—s reaffirms town's AAA rating
Summary
Select Board reviewed a proposed $39.56 million long-term bond issuance, including $35 million for school construction; Moody—s reaffirmed Concord—s AAA rating and the board voted to set maximum useful lives for equipment and capital items to enable borrowing.
Town finance staff and Hilltop Securities advisers told the Select Board the town plans to offer $39,560,000 in long-term bonds, the largest portion of which ($35 million) will finance school construction. Hilltop representatives said the market currently supports an estimated true interest cost of approximately 3.6 percent, subject to bids next week.
Moody—s has reaffirmed Concord—s AAA general-obligation rating (the town is one of few in the Commonwealth with that rating), and advisers said demand for the issue would be strong. Town officials explained the need to set maximum useful-life determinations required under M.G.L. c.44 s.7(3) in order to proceed with the sale.
The board voted to certify maximum useful lives for traffic signals and signage (11 years), heavy equipment (6 years) and school building improvements (6 years) to align with borrowing requirements. Finance staff said the bond sale was expected to be marketed this week with a sale on Sept. 19 and final yields determined by competitive bids.
Board members and financial advisers discussed timing and interest-rate sensitivity and noted the reaffirmed AAA rating helps reduce borrowing costs.
