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Treasurer asks committee to rescind $9.82 million in unused bond authorizations after reimbursements
Summary
Treasurer Pearl Ortiz told the committee nine previously authorized borrowings totaling $9,821,827.98 are no longer needed because projects were completed and external reimbursements (including MSBA) reduced borrowing needs; councillors requested a breakdown of MSBA reimbursement percentages for specific school projects.
Pearl Ortiz, the city's treasurer and tax collector, asked the committee to rescind nine outstanding bond authorizations totaling $9,821,827.98 on the grounds that the projects are complete and the previously anticipated borrowing is no longer required.
Ortiz said the identified totals reflect "uninsured portions of the amounts authorized to be borrowed" and that rescission reduces the city's authorized borrowing ceiling. Several projects fall under state reimbursement programs; Ortiz said some of the largest reductions resulted from reimbursements, notably from the Massachusetts School Building Authority (MSBA). A councillor asked for a ballpark of MSBA reimbursement on one outlier (a roof replacement and elevator project at a school), and Ortiz said she would provide the reimbursement percentage and supporting detail.
Committee members praised the exercise as prudent debt management that will improve the city's fiscal profile and potentially be viewed favorably by credit rating agencies. The committee voted to send the rescission package to the full council with a favorable recommendation.
