Saugus Town Manager Scott C. Crabtree announces a Savings of $343,752 for the Taxpayers of Saugus through Refinancing with its AA+ Bond Rating
Saugus Town Manager Scott C. Crabtree announces a Savings of $343,752 for the Taxpayers of Saugus through Refinancing with its AA+ Bond Rating
(Saugus, MA) December 9, 2020 - The Town of Saugus issued $2,015,000 general obligation bonds to refinance bonds of the Town that were originally issued on March 3, 2011. The refinancing will generate gross budgetary savings of $343,752 over the remaining ten year life of the bonds refunded. This restructure remained within the original terms of the loan and no additional years were included. The Town received a total of five bids on the bond issue, with Robert W. Baird & Co., Inc. providing the winning bid of 0.576% interest rate. This is an incredible 0.576% interest rate using the weight of the Town of Saugus’ hard earned S&P’s AA+ bond rating.
“This is such a tremendous opportunity for the Town and for the taxpayers of Saugus. The Board of Selectmen and this administration continue to seek opportunities to save money for the community.” stated Crabtree. A majority of the savings is from water and sewer enterprise debt being restructured which will in turn have a direct savings in the overall debt service within those accounts.” said Crabtree. “I want to thank my staff and the collaborative efforts of the Board of Selectmen, Finance Committee, and Town Meeting with this success.”
Prior to the sale, S&P Global Ratings (S&P), a municipal credit rating agency, reviewed the Town’s credit status with the Town’s financial management team. The review covered updates on the local and regional economy, the Town’s management practices, finances, debt position and other obligations, including other post-employment benefit and pension obligations. Following the review, S&P’s rating committee affirmed the Town’s AA+ bond rating. S&P’s rating report noted the Town’s “very strong economy, strong management, strong budgetary flexibility, and very strong liquidity.” The report recognized the Town’s management practices as “strong” and highlighted the Town’s formal debt and reserve policies and long-term financial plan in their Financial Management Assessment.
“The refinancing of these bonds at such a favorable interest rate of 0.576% is just one more example of the benefits to our taxpayers from our strong fiscal policies and high bond rating. This savings, mostly in our water and sewer enterprise accounts, will help lower the future debt service costs and lessen the burden on our taxpayers in the future. Hats off to our Town Manager and his team for continuing with our sound fiscal policies and budgeting, it truly makes an enormous difference for our town.” stated Selectman Jeff Cicolini.
“I want to thank Town Manager Scott Crabtree and the financial team for their due diligence and efforts in saving hundreds of thousands of dollars for the residents of Saugus with this refinancing and millions of dollars overall with the Town’s capital improvement plan. These savings will go a long way within the sewer enterprise account and working to maintain low rates to the sewer rate payers in Saugus.” said Chairman Anthony Cogliano.