Saugus receives ‘fantastic’ bond borrowing news

SAUGUS – Town Manager Scott Crabtree announced Monday that Saugus will be able to participate in the State Qualified Bond Act, which will allow the town to borrow using the state’s higher bond rating.”This is fantastic news for the taxpayers of Saugus and provides us with credible feedback that our financial reforms and practices are in the best interest of not only Saugus citizens but several high level state agencies,” said Crabtree.Moody’s Investor Services downgraded Saugus’ bond rating from A1 to A2 and assigned a “negative outlook” to the town’s $22.4 million of outstanding bonds last May. By issuing State Qualified Bonds, the town will be able to borrow at the AA2 rating, which is one grade below the state’s and three grades above the town’s rating.Crabtree said the Massachusetts Municipal Finance Oversight Board, which is chaired by State Auditor Suzanne M. Bump, approved the request after he and other town officials met with the board last month.”By approving our request, the town will receive the preferable state bond rating,” said Crabtree.Crabtree estimated this could save an estimated $350,000 for the town over the life of its bonds and an additional estimated $210,000 savings if the town “refinances bonds issued in 2003.”Crabtree said he was “grateful for the thorough review provided” by Bump’s office and the “ongoing dialogue” with the Department of Revenue.”Saugus residents and taxpayers now have an additional benchmark by which to judge our progress towards financial transparency and stability.”Matt Tempesta can be reached at [email protected].