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Select Board approves $7.5 million BAN renewal for Hardy Elementary as project expands
Summary
The Select Board voted 5-0 to renew a $7.5 million Bond Anticipation Note for the Hardy Elementary School project to accommodate expanded work including solar installation and unresolved closeout items; the BAN sold at a true net interest cost of 2.60% with a $67,275 premium.
The Wellesley Select Board voted unanimously on May 19 to renew a $7,500,000 Bond Anticipation Note for the John D. Hardy Elementary School project to cover expanded scope and outstanding closeout steps, including installation of solar panels.
Town Treasurer/Collector Maura O’Connor and Chief Financial Officer Rachel DeRoche told the board the renewal lets the town defer final long-term borrowing until project costs are clearer, avoiding the risk of over- or under-borrowing and the need for repeated issuance. A competitive sale on May 14 drew four bids between 2.60% and 2.7495%; Fidelity Capital Markets was awarded the BAN. The town also received a premium of $67,275, producing a true net interest cost of 2.60%—below recent long-term borrowing rates cited by staff (about 2.78%).
DeRoche explained that the existing $7.5 million of short-term debt will later be consolidated into a comprehensive long-term borrowing once final costs and MSBA reimbursement issues are resolved. The board’s vote included standard authorizations for issuance, continuing disclosure and post-issuance federal tax-compliance procedures, and allowed electronic execution of required documents.
The motion, moved by Colette Aufranc and seconded by Thomas Ulfelder, passed 5-0. Voting roll call recorded Aufranc, Freiman, Largess, Sullivan Woods and Ulfelder as “Aye.” The board’s action references G.L. c.70B, the statute governing school construction financing, as part of its determination that the financing complies with statutory limits.
Next steps include execution of issuance documents, filing the official statement and updating internal compliance procedures. Town staff said no immediate tax or operational impacts were expected as a result of this renewal; the long-term debt schedule will be set when project closeout and MSBA reimbursement details are finalized.
