LYNN – A state panel Wednesday approved the city’s request to refinance $54 million in bonds for Classical High School repairs and the waterfront power line project, a move that could save the city around $1 million this fiscal year.
The Municipal Finance Oversight Board, convening officials from across the executive branch, unanimously signed off on the bonds, which will fund the renovations of LCHS, wrapping up this fall after two straight years of construction, and the waterfront power lines project, part of an ongoing effort to redevelop and beautify the Lynnway waterfront.City Treasurer Richard Fortucci reported heavy layoffs in the city in meeting with the board Wednesday in Boston, but said long-term, costly projects were wrapping up and the city had budgeted conservatively.”It’s not smooth,” he said of the city’s financial state. “It’s skinny.” The state’s approval will aid Lynn by preventing the city from having to obtain bond insurance, and return savings to the state as well when the bonds are paid off at a lower rate, officials said.The bond-backing program, close to 30 years old, is increasingly popular amid municipal fiscal storms, particularly in older cities whose bond ratings make bond market access difficult.”With the situation today and the dire straits they’re in, it’s a great benefit to them to get into the bond market and to save money,” said Mary Ann Growitz, board secretary and an aide to Auditor Joseph DeNucci, chair of the board.Mayor Edward J. Clancy Jr. said the act was a routine re-financing in an effort to save the city some money going forward as market rates have dropped in recent months. He said the exact savings to the city is yet to be determined.”We are basically trying to refinance the bonds because the rates have gone down, so Mr. Fortucci is in Boston (Wednesday) trying to get that approved,” Clancy said. “Any time we can try and save a little bit of money we are going to have to do it.”Classical High School, in need of repairs due to structural deficiencies, has been under the knife for over two years but is nearing the end of a comprehensive project that displaced ninth grade students throughout.Efforts to move power lines from the Lynnway waterfront to the south bound side of Route 1a are also underway.
