1988-11-BOS-min - Laserfiche WebLink

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1 s 1 ' � Meeting -3- �,ovember �` , 1.988 pan Selectmen .� M 9 PT NE MEADOWS BOND 1 SSUE bond Mr, White reported that the 10 mil 1 i on , 1.80 day short -term p Meadows wi ll be due on March ant notes for the purchase of Pine T t had been ad sed by John Ran and by Clark Rowel l- , F i nanc i a � 2_ 1989. �� M �� c m the Shawmut Bank, that the permanent debt be Issued before Advi from the end of the calendar year to allow the Town to offset the borrowing f bond anticip note by investing the proceeds o: the costs • o, the a p n debt issue until the due date of the short term borrow (with p revenu es of $150,000) and b allowi the Town the opportunity for two Y bond sales in January, 19890 Prepared for the Board's review by Mr. Rowell was a proposed • along with debt service schedules for to , 15, and 20 financing schedule g years. Mr. White noted that the Board must come to a decision on the length of the debt service schedule that evening. p Q Mr. Ryan and Mr. Rowell were for explanation of the � p financial al impacts of the differing schedules and to outline benefits available b Y financing n f i now. Mr. Ryan and Mr. Rowell had both g recommended bondin g s. on a ten year basis. A data sheet showing comparisons among the three options was distributed and reviewed Whit to concurred with the recommendation for the ten year debt .Mr, • � re ardi n debt so service noting the benefi of an aggressive v e posture g g . P as not to interfere with e future debts which it seems likely will be faced. i.e. maintenance of nfrastructure and other unexpected .. large expenditures. He felt t t hat the shorter term payback could help to stabilize the tax rate so that increases won 't be as high in future years . Mr. _ Fdd i son ` s p was in favor of a 15 -year bonding term. He noted the probability that a lard bank tax would soon be approved which would allow the Town funds for land purchases and affordable housing. He also felt that it would be appropriate for future residents of the Town to share in the cost of the land and did not concur with the certainty that ma of infrastructure would represent major expenditures in the next- few years. He felt i t Mr. Marshall also supported longer -term bonding. important to lessen the financial impact in the early years, and to , share the purchase costs as well as the benefits of Town ownership with future townspeopl Mrs. Smith said that although she is sensitive to keeping costs was concerned with the effect of long-term bonding on the down, she . l e A rating and favored the 10 --year period . she noted that Town' trip g 1 years ears had been the time frame mentioned at the time of the town election on on overr and was not comfortable with changing it. Mr. D a i l e y agreed reed with Mrs Smith's v i e w . He felt it would be a mistake, with g th otenti al bonding obligations in coming years, to add to the debt servi y 9 b incurr n even more interest costs, as would be the case with 15 or 20 year bonding. . ne was also i n favor of the l0 -uea bonding, ng , add r � ng that. Mr. McSweeney _ $20 mi l l i on for ul d bother him reatl y to go to a total of $18 � t would g the purchase. • as made to authorize the issuance of $10,000,000. i n bonds Moti w as soo n as p ossible, to be repaid over a ten -year period, with the remaining f i n a n c i n g to be done in 1989. Mr. Marshall moved to amend the motion by changi the bonding P y period to 15 years and the amended motion was seconded.