Refinancing its debt not option for Saugus

SAUGUS – Town Manager Andrew Bisignani said refinancing the town’s debt is not a viable option for the community and wouldn’t aid in the financial crunch.The discussion on the issue came during last week’s Board of Selectmen meeting and was in answer to a number of e-mails that have been swirling between residents, a handful of Town Meeting members and a few selectmen.The e-mails focused on the fact that Wakefield is looking at saving $450,000 by refinancing $16 million in bond debt. Its debt is largely based on two school projects that were bonded in 1997, 2000 and 2002.The refinanced rate is expected to be 2.7 percent in interest rates compared with the 5 percent it was paying.Bisignani said the town refinanced all of its eligible outstanding debt in 2005.”I checked with outside counsel and we don’t have any debt that falls into the parameters,” he said.Bisignani said the town’s primary debt is made up of no-interest loans from the Massachusetts Water Resource Authority and the town-wide sewer rehabilitation project, which is being financed through low interest loans from the state.”I did check with the bond counsel about it,” he said.Selectman Peter Rossetti said the idea was representative of the kind of ideas residents have been coming forward with with an eye on helping the town.”It is a good idea but it was already taken into account,” he said. “If any one has another idea they think is worth discussing, please bring it forward. At this point any idea is worth discussing.”