Select Board approves BAN from Eastern Bank
Date: 12/10/2012
By Chris Maza
chrism@thereminder.comLONGMEADOW — The Select Board unanimously voted to approve and sign a bond anticipation note (BAN) from Eastern Bank for $697,800 at its Dec. 3 meeting.
Director of Finance Paul Pasterczyk explained to the board that the town currently has $1.7 million in BANs that will come due on Dec. 13 and while $1.5 million would be retired, some project financing will continue and some new projects also require funding.
"With any of our smaller projects, we strictly try to use BANs to avoid issuance costs and take advantage of lower interest rates," Pasterczyk said.
Among the debts that are set to be retired is the $900,000 to pay for damage resulting from the Oct. 29, 2011 snowstorm and $425,000 spent on the Ely Way and Englewood Road drainage projects.
Half of the outstanding debt for water and sewer upgrades on Maple Street and the sewer jet project will be retired and new BANs will be issued for the remaining $63,000, $36,000 and $50,000. A portion — $27,200 — of the $136,000 total for the water improvement project on Primrose Lane will also be retired with a BAN to be issued for the remainder.
"We're also looking to start the financing of the fiber optic program that was approved at our last town meeting," he said. A BAN in the amount of $440,000 will be issued to finance this project.
Pasterczyk explained that the town went out to bid on the BANs, garnering four offers. While two of the bids came with a rate of 0.55 percent Pasterczyk recommended the Select Board accept the Eastern Bank's bid.
*** Acting Town Manager Barry Del Castilho told the board that he has seen increased interest in the Town Manager position.
"In the last four days, we have received seven applications for Town Manager. As I had hoped and expected, as the deadline grows near, they are coming in in greater numbers," he said, adding that as of Dec. 3, the town had received 12 applications.
With an application deadline of Dec. 10, Del Castilho suggested that a discussion should take place at the next Select Board meeting to determine "the mechanism we need to rate the applications for the screening process."
The Select Board's goal is to fill the position, which comes with an annual salary of $115,000, by March.
*** Select Board Chair Paul Santaniello also scheduled time during the Select Board's Dec. 10 meeting to discuss options regarding the Department of Public Works (DPW) and its facility needs.
"We need to make a decision on whether or not we are going to move forward with this [project] this year or if we are going to put it on another back burner," Santaniello said.
In April, the Select Board released a notice stating that the town was looking for proposals or a real estate transaction involving plots of land within town limits that measure six acres or more of contiguous land in response to the DPW's need for a new facility.
Then-Select Board Chair Mark Gold said that a study conducted by Tighe & Bond indicated a new facility would cost approximately $12 million.
