Politics & Government

Town's Bond Rating Remains AAA

Board of Selectmen happy with latest bonds and notes received to pay for Glover and Village School work.

For the second year in a row, Marblehead has received an 'AAA' bond rating from Standard & Poor's Ratings Group, the municipal bond credit rating agency. The rating is the highest long-term rating attainable by cities and towns. 

At Friday morning's Board of Selectmen meeting, Chairman Jim Nye and Town Administrator Tony Sasso remarked about the good news.

"This is a great credit to the responsible leadership," Nye said.

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John McGinn, town finance director, told the board the work was a team effort along with Town Treasurer Patricia Murray.

The majority of the meeting focused on gaining the correct approvals and signatures to OK two competitive bids from bond and note underwriters. 

Find out what's happening in Marbleheadwith free, real-time updates from Patch.

On Tuesday, the town received a bid for a $12 million, 20-year bond issue and a $3.332 million, 1-year note issue.

USBS Financial Services Inc. was the winning bidder on the bonds with an average interest rate of 3.06%, according to McGinn. Eastern Bank was the winning bidder of the notes with a net interest rate of 0.469%

The bond proceeds will be used to permanently finance maturing notes originally used to fund the renovations to the Village School. Note proceeds will be used to finance the Village School remodeling as well as a feasibility study for the Glover Schools. 

"This is a great time with the interest rates, to be borrowing," McGinn told the board. 

Selectwoman Judy Jacobi remarked at the low interest rates and Nye and Sasso expressed their happiness with the deal.

In addition to Standard & Poor's  strong bond rating, the agency assigned Marblehead a 'SP-1+' rating to the notes, which is the highest short-term rating attainable.

In a report given to the board, Standard & Poor referenced, the town's "strong property wealth and income indicators, strong financial position and above average amortization" as positive factors.

Other Business

  • Town Finance Director John McGinn asked the board to approve a clarification regarding non-exempt town employees. In the rare occasion that one of the 10 employees eligible were asked to work over-time, the town would pay overtime starting after 40 hours. The motion was approved.
  • McGinn also recommended to the board that new policies are put in place regarding anti-fraud safeguards. McGinn said the town has had no experience with fraud, but it is another internal control to make things safer in town. Selectmen will look over the policy change and take it up at the next meeting.
  • Robert Pescatore, new manager at the Boston Yacht Club, asked the liquor license be transfered to his name. The board granted the motion.
  • Black Cat 20-Miler Race organizers asked the town's permission to hold a 20-mile race from Salem into Marblehead on March 6. The Selectmen approved the motion pending approval from police and fire.
  • The Board of Selectmen supported a motion to open another liquor license in town. The license will be advertised for a certain number of days by the town's legal counsel before applications and business plans will be looked at. 


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