Politics & Government

Town to Refinance Debt

Officials: Action will save more than $1 million.

The Board of Selectmen recently authorized the town to refinance its current bond debt. 

The average interest on the town's outstanding bond debt of $9.5 million was 4.1 percent and under the refinancing will be 1.87 percent, chief administrative officer Robert Skinner said. 

While there are some pre-payment penalties on some of the bonds and some refinancing costs, the move will still save the town more than $1 million over the life span of the bonds, the last of which will be paid off in 2025, Skinner said. 

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The town would also have the option of taking more savings as new bonds are used to finance large capital projects — should the Board of Finance authorize some or all of the projects proposed for a capital improvements package that would go to voters in November. 

Bonding is the way for town's to take on debt to pay back over time. It's often used for larger projects not supported by its yearly budgets. 

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