Pepperell selectmen approve bond refinancing projected to save town $100,000

PEPPERELL — April 4, 2012 — Pepperell Board of Selectmen voted unanimously Wednesday to refinance a 2002 municipal bond, cutting interest from 4.4 percent to just over 2 percent and saving just under $100,000 over 10 years. Finance Director Michael told the board the $955,000 remaining balance on the original $2.5 million bond was accepted at a low bid from Eastern Bank, with net issuance costs of about $10,000 after a $24,000 bond premium; Moody's reaffirmed the town's Aa3 bond rating in connection with the transaction. The board also approved a $6,170 reserve fund transfer for six urgent IT priorities identified by new IT Director Dale Sinclair, including replacing failed backup drives and a new computer for the assessor's office, and unanimously approved the annual and special town meeting warrants — removing a $12,000 Mount Lebanon Street intersection project and clustering school-related articles together ahead of a joint school and finance committee meeting scheduled for Monday, April 9. The warrant carries two school district funding scenarios: a needs budget tied to a Proposition 2.5 override estimated to add $441 annually to the average Pepperell tax bill, and a level services budget estimated at $237 annually.