WHITMAN – The town received some good financial news regarding potential interest rates on borrowing for construction of the new Whitman Middle School.
Initial interest rate calculations of 5.5 percent for borrowing, discussed during the November Town Meeting, now stand at 4 percent, Town Administrator Mary Beth Carter announced on Tuesday, Jan. 9 Select Board meeting.
“That’s some good news there,” Board member Shawn Kain said.
“A little good news there,” she agreed.
Carter said that she has met recently with W-H Director of Business and Finance John Stanbrook and Lynn Welch from Unibank Fiscal Advisory Services, W-H Treasurer David Leary, Town Treasurer-Collector Ken Lytel and Assistant Town Administrator Kathleen Keefe to discuss the preliminary WMS borrowing plan.
“The initial plan is for the district to go out and borrow $6 million in approximately the month of March 2024 in the form of a bond anticipation note,” Carter said. “We’re short-term borrowing.”
In Fiscal 2025, the interest of about $240,000 will be due with the estimated impact to the median house with an assessed value of $448,800 in 2024 will be $42.91 per $1,000 of assessed value.
“That’s the impact because we’ll just be paying the interest on that [bond anticipation note],” she said.
In March 2025, the district intends to permanently finance the $6 million BAN that rolls out to a bond for 29 years – because they do not want to go any longer than 30 years total – and they will borrow an additional $60 million in the form of a bond for permanent financing, she explained.
“The BAN will be rolled over for one year, we’ll have a 29-year term as a bond and then the new bond will be straight for 30 years for the $60 million,” Carter said.
In fiscal 2026, the full principal and interest will be due on the bond issuance amount of $66 million, with estimated impact to the median house would be $867.14. In fiscal 2027, the balance of the remaining district share and 5 percent of the MSBA hold-back amount [until the project’s completion] will be borrowed with a BAN of an additional $10 million, or $76 million total.
“That [$867.14 for the median house] is lower than we anticipated, because … Stanbrook, when he had to put an interest rate out there, said 5.5 percent,” Carter said. “They’re calculating these numbers right now at 4 percent. But I can’t say or stress enough that these numbers are fluid. It’s ever-changing … but right now, that’s the plan.”
The “big hit” for taxpayers would be in 2026.
The first full bond amount in 2026 is now $867.14 (based on current valuation of $448,800 for a median home). It later goes up to the highest amount of $931.36 after the final $10 million BAN is taken, and then it does decrease, dropping to $436.26 in the last year, she said stressing the numbers that far ahead are just estimates.
What’s in a name?
In other business, the board voted 4-0, with Vice Chair Dan Salvucci abstaining to forward a proposed amendment to the Bylaw Committee, replacing the words “Board of Selectmen” with “Select Board” wherever they appear.
“It seems we’re just getting rid of the old ways of doing things and all of a sudden just changing things,” he said. “I’m just curious as to why that’s happening.”
Board member Laura Howe, while agreed Salvucci’s opinion, but as the female member of the board, she also understands the change.
“I never had any problem [with ‘Board of Selectmen’], but I think they call it progress,” she said. “We’re supposed to move forward, and the next person sitting in this seat might prefer that, so why not get it out of the way now?”
“I don’t understand why things are changing in today’s world,” Salvucci said.
“Yeah, but they are,” Kowalski replied.
Board member Justin Evans explained that the change stemmed from the Mass. Selectmen’s Association renaming itself the Mass. Select Board Association in 2020.
“Other towns have really picked this up,” he said. “Hanson did it a couple of years ago. It was on our Town Meeting warrant last year, but we didn’t have the Planning Board hearing, which are required to amend the Zoning Bylaws, because we’re the licensing authority on some of the Zoning Bylaws. We had to pass over that at Town Meeting.”
The vote begins that process to get it back before Town Meeting.
Evans also pointed out that there have been nine female Select Board members – Howe being the ninth – in Whitman since 1975.
“I will abstain,” Salvucci said. “I’m old-fashioned.”