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Select Board authorizes $24.495M bond sale to fund Pierce School and other projects
Summary
Select Board approved issuing $24,495,000 in general-obligation bonds (true interest cost 3.39%) to cover multiple projects including Pierce School construction, fire station work, playground improvements and stormwater projects; Finance Director said Moody's reaffirmed Brookline's AAA rating.
Finance Director Lincoln Heinemann told the Select Board the town sought authority to issue $24,495,000 in general-obligation bonds to finance six projects, with the largest allocation for the Pierce School construction. Heinemann reported a true interest cost of 3.39% and said Moody's reaffirmed Brookline’s AAA rating.
Heinemann described the borrowing package and answered members’ questions about reserve-policy metrics that Moody’s is reviewing. He explained Moody’s now looks at total revenue (including enterprise funds such as water, sewer and golf) when assessing reserves, which effectively raises the recommended reserve target though Brookline’s FY22 audit showed roughly 23.1% of total revenue in reserves.
After discussion on amortization terms and comparators, Chair Bernard Green moved the authorization; the board approved the issuance and directed staff to sign closing documents so the bond award to Robert W. Baird & Co. could proceed.
The authorization covers projects including Pierce School construction (largest single project), initial borrowing for fire-station renovations, playground improvements for Murphy and Robinson, stormwater projects, and a Pierce feasibility study. The board emphasized signing documents promptly to meet closing timelines and to preserve the AAA rating advantages on borrowing costs.
