Town Of Brookline Realizes $337K In Savings By Refinancing Bonds

BROOKLINE, MA — The Town of Brookline has realized $337,347 in savings by refinancing bonds after Moody's Investors Service reaffirmed the Town's coveted AAA bond rating, according to Town Administrator Mel Kleckner and Acting Finance Director and Treasurer Justin Casanova-Davis.

In late February, Moody's reaffirmed Brookline's exemplary AAA bond rating — the highest long term rating the agency provides — citing the town's sizeable tax base, very strong resident wealth and income, comprehensive fiscal policies and planning, and taxpayer support for the general tax levy overrides and debt exclusions as positive credit factors.

On March 2, the town received competitive bids from bond and note underwriters for a $21.75 million 20-year general obligation bond, as well as a $4.87 million 1-year bond anticipation note.

Fidelity Capital Markets was the winning bidder on the bonds, with an average interest rate of 1.728 percent. Oppenheimer & Co., LLC was the winning bidder for the notes, with a net interest cost of 0.989 percent. There were six bidders on the bonds and five bidders on the notes.

"I'm pleased to report to Brookline taxpayers that our efforts to proactively and responsibly manage the town's finances have once again paid off, as our highest-possible bond rating has been reaffirmed, resulting in direct cost savings," said Kleckner in a statement. "I want to thank Justin and the town's entire finance team for their outstanding work."

The bonds and notes will be used to fund the Town Meeting-approved settlement in the Gerald Alston case, various municipal projects, and the refinancing of bonds that were originally issued in 2012. Refinancing the 2012 bonds will save the town $337,347 over the remaining life of those bonds.