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Scituate approves short‑term borrowing to clear $2.4M FEMA‑linked debit
Summary
Finance staff told the board FEMA reimbursements left a $2.4 million debit on the town books; the Select Board approved a competitive sale of bond anticipation notes to remove the debit from free cash and preserve certified cash for capital budgeting.
Town finance staff said FEMA has notified the town it expects to reimburse a set of emergency and capital projects, but the anticipated receivable currently appears as a $2,400,000 debit on the town books. To free up certified cash for capital budgeting, staff proposed short‑term borrowing via a bond anticipation note; staff said the sale produced a coupon near 4 percent with a net interest cost of 2.78 percent.
The board moved to approve the competitive sale and the formal award of notes at the rates presented. Finance staff described the borrowing as a short‑term, bookkeeping‑driven action to be repaid from FEMA reimbursements when they are received; the board instructed staff to continue coordination with state and federal partners to secure reimbursements and to return with further recommendations as needed.
