TO: Board of Selectmen
FROM: Carter Terenzini, Town Administrator
RE: Administrator’s Weekly Report
DATE: February 7, 2019
CC: All Departments


5g. We have $16.6M of BANs due at the end of this month. The intent is to pay about $380k in cash from the budget, roll $4M as BANs until 02/20, and then issue General Obligation Bonds of  $12.230+/- M. I say plus or minus because we are required to resize the final GOB by the prorata share of the net premium being earned on the police portion of the bond (We anticipate the final PD portion of the bond to be $2,440,000). The interest rate on the GOB is less than 3.5% while the net interest rate on the BAN is just under 2.09. In November you will need to roll those BANs until 02/20 so that you can then issue a GOB at the appropriate structure to account for the length of time it may take the MSBA to settle your account. While you remain well under budget this can always change so… You may find you need a modest amount of a new BAN may be needed toward the end of the project to cover any changes in this status or the MSBA settlement impact our current cash flows.