Mayor William Martin and Finance Director Elizabeth Braccia submitted over $48 million in borrowing rescission orders to the Greenfield Town Council for their February meeting. This represented borrowing authorized by the Town Council that was not used, either because the project came in under budget or due to the requirement that reimbursed projects must be authorized at the total project cost even though the Town will not spend the total amount.
“In the simplest terms, this is closing down credit lines following good fiscal management practices,” said Braccia.
The town has a statutory limit on borrowing authorization, and this recision releases the borrowing commitment for finished projects so that funds can be committed to new projects. “This financial move is in line with our commitment to the community and to update and upgrade to stay current and competitive,” said the Mayor.
“There is constant year after year authorization for borrowing, but what is important is the aggregate number, that’s what we’re focused on as a best practice,” said Mayor Martin. “The spike was due to the funding authorization vote for the High School for 100% of the projected project cost. It added $66 million to the authorized borrowing, even though we only spent about 20% of that.”
“We do our best at conservatively estimating the cost of large, complex, multi-million dollar projects,” said Braccia. “These rescissions represent getting a good deal for the taxpayer, either by finding additional funding sources and/or by obtaining lower prices due to competitive bidding.”
“In the past 30 years, Greenfield had taken an extremely conservative financial position, which led to declining infrastructure and deferred maintenance,” Martin continued. “I have taken a different approach, to capitalize on the current economy which offered low interest rates and competitive construction costs. This has helped us deliver under-budget projects.”