The Carlisle Mosquito Online

Friday, May 28, 1999

News

Town receives Aa bond rating

Moody's Bond Rating Service has recently reviewed Carlisle finances and once again awarded it the Double A rating. Town treasurer Nancy Koerner requested the rating for use in marketing the $3,770,000 bond sale scheduled for June 3. The funds received from the sale will cover short-term notes for the school's Grant Building, ambulance, Banta-Davis fields, school roof, and a small balance on the Town Hall. This will bring the total of the town's outstanding debt to $9,965,000. Included in this total are previously bonded projects, such as the fire station, Cranberry Bog, police station, Corey Building expansion, Bisbee Land and Town Hall. This will mean that the town's debt payments, including both principal and interest, will increase from $1,348,615 to $1,700,000 for the upcoming fiscal year 2000.

Projects which have been approved by the voters, but are not yet bonded include the Gleason Library expansion ($1.48 million), purchase of the Wang-Coombs Land ($2.1 million), the pumper truck ($304,000) and the air quality improvement project at the school ($153,700). These projects, totalling $4,096,767, will probably be bonded in June 2000 or June 2001.

According to Koerner, Moody's commends the town on many aspects of its financial situation but expresses concern over the downward trend of Free Cash and Undesignated Fund Balances. Since 1995, these two items have decreased from $1,014,132 to $368,797 and $1,253,571to $591,486, respectively. Offsetting these low balances, however, is the town's high rate of tax collections (97 percent this year), good demographics, low dependence on state aid, and the willingness of the community to override the limits of Proposition 2-1/2 for capital projects and major purchases

The town's "Official Statement," prepared by Koerner and BankBoston advisor Pauline Marry, provided the basic information for Moody's and will be distributed to prospective buyers of Carlisle bonds. The booklet, which contains a great deal of information about the town, is also available at Gleason Library and the treasurer's office in Town Hall.


1999 The Carlisle Mosquito