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Mashby selects StoneX to buy $15.05M municipal bonds to fund police, wastewater and road projects
Summary
Select Board approved the sale and formal acceptance of a $15.05 million general-obligation bond, awarded to StoneX Financial after competitive bids; the lower true interest cost will reduce borrowing costs for projects including a police station and wastewater work.
The Mashby Select Board voted on May 18 to accept the sale of $15,157,699 in general-obligation municipal bonds to StoneX Financial Inc., authorizing related documentation, continuing disclosure and post-issuance tax-compliance procedures.
Assistant Treasurer Jennifer Beaton and the town’s fiscal adviser presented the results of competitive bidding: eight bids produced true interest costs ranging from 3.41% to 3.53%, with StoneX submitting the winning bid at a 3.41% true interest cost. Beaton said the bond issue will fund a portion of the police station, design and engineering for wastewater (the Mashby Wastewater Cluster System), and several road projects including Oldtown Circle, Watson Drive and Christopher Lane.
Beaton noted the town’s AAA rating from Standard & Poor’s—higher than the U.S. government rating—cited a strong property tax base and healthy reserves and helped secure lower borrowing costs. The board read and approved the formal vote language to accept the bid, authorize the town treasurer to establish post-issuance federal tax compliance procedures, and allow execution of necessary documents; the motion passed unanimously.
Town finance discussion clarified a frequently confusing point: the coupon rates listed in the bond schedule (4%–5%) differ from the true interest cost because of the premium included in StoneX’s winning bid, which lowers the net borrowing cost to the stated 3.41% true interest cost.
What happens next: the town treasurer and select board will execute required documents and continue required disclosures and compliance activities for the bond issuance.
