Town To Save On Borrowing Costs
At this week's selectmen's meeting, Town Administrator Bill Gustus reported that Eastern Bank submitted successful bid for note of close to $3.5 million.
The town is expecting to save some money on interest on funds borrowed for its capital budget plan and its portion of the high school expansion project.
At this week's selectmen's meeting, Town Administrator Bill Gustus reported that a total of five institutions had submitted bids for a 1-year debt note amounting to $3,447,037. The winning bid was submitted by Eastern Bank, with a 1.25% interest "coupon" rate. The way the coupon rate works, the town will actually only end up paying an interest rate equivalent to 0.479% - or $16,465.44 for the entire debt total.
"We did quite well. Interest rates as you know are extremely low but this is a fantastic number for us," said Gustus, also noting that "we have more than enough in the budget to cover this next year."
Editor's Note: The capital budget can be viewed here.