The Marion Board of Selectmen on April 11 authorized a new bond anticipation note (BAN) for $2,233,000 – the estimated cost to improve one of the sludge lagoons at the wastewater treatment plant.
Town Meeting had voted two years ago to approve the sum, said Finance Director Judith Mooney during the special meeting held that Wednesday afternoon, adding that the $2,233,000 is an approximate total for the project. The actual cost could vary slightly once the time comes for the Town to finalize the bond with the lender.
The board renews its outstanding BANs on an annual basis until the actual cost of the project becomes known and that final cost can be borrowed in the form of a bond.
“You don’t want to borrow the full amount if you don’t have to,” said Mooney.
Town Administrator Paul Dawson said the BAN’s low interest rate of 1.75% is undoubtedly due to the Town’s AAA bond rating.
Selectmen also voted to renew another BAN totaling $2,650,056 – a preexisting BAN for the Great Hill water tower, the fire pumper truck, and the Mary’s Pond well replacement – effective April 19, 2018 to October 19, 2018 with an interest rate of 1.65%.
Dawson, Mooney, and Treasurer Gary Carreiro advised the selectmen that by renewing the BAN for only six months, the Town could then combine it with an existing $5.5 million bond for the police station and Benson Brook water tower when it is ready for refinancing in October.
Combining the new BAN with the bond could save the Town over $300,000, “Which is pretty substantial,” Mooney said.
“We’re always looking for refunds,” said Mooney, and if interest rates remain low, the Town will follow through with the refinance and combining of the BAN.
The last time the Town refinanced a bond was in 2010, saving the Town about $500,000 on the Sippican School renovation project.
Marion Board of Selectmen
By Jean Perry