While the low-interest rate environment promoted by the Federal Reserve over the past five years has dampened residents appetite for bonds, the same condition has been a boom for municipalities with good credit ratings when selling their debt on the open market.
Using its top-ranked “triple A” credit rating, Belmont’s Treasurer and Tax Collector Floyd Carman was able to receive eight bids for nearly $29 million in municipal bonds that will include financing construction and upgrades to the Belmont Light substation that will be located on Flanders Road.
The winning bid for Belmont’s bonds came from Morgan Stanley offering an average interest rate of 2.951 percent, Carman told the Board of Selectmen on Tuesday, April 22.
“That is a good deal for the town,” said Carman, noting the low rates will result in a significant savings to taxpayers which will be felt on Belmont’s fiscal bottom line.
The bond will pay for:
• $26,100,000: Belmont Light substation construction.
• $482,000: Water main replacement.
• $30,000: A school department vehicle.
• $890,000: a ladder truck for the Fire Department.
• $500,000: a new fire engine.
• 960,000: Harris Field replacement.