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Wellesley approves $12.57 million bond to fund HVAC, road and RDF projects
Summary
The Select Board unanimously approved votes authorizing the sale of $12.57 million in 20-year general obligation bonds to finance the Warren Building HVAC, Western Road improvements and the RDF Administration Building and ratified related disclosure and tax-compliance procedures.
Chief Financial Officer Rachel DeRoche told the Select Board the town received nine competitive bids and sold $12.57 million of 20-year general obligation bonds with a net interest cost of 2.659 percent after a $1.28 million premium reduced the borrowing from $13.85 million.
DeRoche said Moody's maintained Wellesley's Aaa rating following the agency's annual call, citing the town's robust tax base, strong institutional presence and conservative financial management. She noted Moody's reference benchmark of reserves closer to 20–25 percent of revenues compared with Wellesley's current 15–16 percent, and said the Policy Subcommittee could consider reserve-policy adjustments in long-term planning.
The bonds will fund three projects: Warren Building HVAC, Western Road improvements (Fells to the Weston line) and the RDF Administration Building. DeRoche explained the premium structure and amortization terms and recommended continuing-disclosure and post-issuance federal tax compliance procedures to preserve the bonds' tax-exempt status.
On a motion by Colette Aufranc and seconded by Thomas Ulfelder, the Board unanimously approved the bond-related votes prepared by bond counsel, including authorization to award the bonds to Brownstone Investment Group, LLC and to permit execution of related documents and electronic signatures.
The Board discussed balancing infrastructure needs with taxpayer impacts and signaled possible future review of the town's reserve-policy targets in light of anticipated debt exclusions and long-term capital planning. No amendments were proposed during the meeting; the authorizing votes include standard redemption provisions and continuing-disclosure commitments.
