BRAINTREE — Mayor Charles C. Kokoros is pleased to share the Town of Braintree’s first-ever passing of a debt exclusion and the signing of a certificate of award for a 25-year bond issue.
The debt exclusion special election was held Saturday, Sept. 26. Voters approved the debt exclusion override, in the amount of $63,088,631, to fund school improvement projects. Approximately $55 million of these funds will go toward the South Middle School building project. The remaining funds will go toward roof replacements at the elementary schools, a feasibility study at Braintree High School and security improvements across the district.
Additionally, yesterday, Oct. 21, Mayor Kokoros and Braintree Town Treasurer Barbara Walls signed a certificate of award for $51,460,000, a 25-year bond was issued for $49,605,000. In Mayor Kokoros’ decision to reduce the bond from 30 years to 25 years, the Town will save an excess of $3 million over the lifespan of the bond.
The Town received eight competitive bids from bond underwriters for the bond issue. J.P. Morgan Securities LLC was the winning bidder on the bonds with an average interest rate of 1.988%.
The bids for the bonds were accepted at the offices of the Town’s Financial Advisor, Hilltop Securities Inc. in Boston.
Bond proceeds will be used to finance various capital projects and refinance bonds of the Town that were originally issued May 15, 2010. The refinancing will generate gross budgetary savings of $305,449 over the remaining life of the bonds refunded.
Prior to the sale, S&P Global Ratings, a municipal credit rating agency, affirmed the Town’s ‘AA+’ underlying long-term debt rating. The AA+ rating is the second highest bond rating available and reflects the high-quality financial condition/low credit risk of the Town.
The rating agency cited the Town’s very strong economy, strong management with good financial policies and practices, and very strong liquidity as positive credit factors.
“We would like to thank voters for their support of the Braintree Public Schools and the proposed improvements that will ensure our school facilities serve our students and faculty well for years to come,” Mayor Kokoros said. “We are also excited to share the additional bond signing and rating news with our residents. The AA+ bond rating is a testament to the hard work of our town’s financial staff over the years and our continued commitment to sound financial practices.”