WILMINGTON, MA — At this week’s Board of Selectmen Meeting, Wilmington Finance Director/Town Accountant Bryan Perry announced that the town is pursuing an “advanced refunding” of the remaining debt from the High School building project, which would result in an anticipated savings of approximately $2.6 million over the life of the debt — $155,000 per year through 2037.
“Recently, the town’s financial advisor has reached out as we now the opportunity to, in essence, restructure the debt based on current market conditions,” Perry told Selectmen in a memo which he summarized.
Perry noted the “advanced refunding” process is very involved and would require a ratings call with Standard & Poor. Their rating and outcome would affect the amount of anticipating savings the debt restructuring would yield.
“We believe that it is in the best interest of the town to continue to pursue an advanced refunding of High School debt at this time,” said Perry. “Our intention is to move forward with the steps needed to proceed with this refunding. However, if the economic factors change to the point where it is not worthwhile, we could potentially halt the process before any bond offering.”
Each Selectman thanked Perry for researching this opportunity, taking advantage of the favorable markets, and saving the taxpayers a significant amount of money.
The Board of Selectmen will sign the necessary bond insurance documents at its next meeting on Monday, September 14, 2020.
The “new” high school cost $83 million. The Massachusetts School Building Authority funded approximately $39 million in costs. The remaining $44 million was financed by the town with a 25-year bond in 2012. There’s approximately $30 million in principal remaining.
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