Mayor Michael J. McGlynn is pleased to announce that Moody’s Investors Service has assigned an A1 rating and increased the outlook from Stable to Positive for the City of Medford’s recent $8,885,000 bond offering.
“In these difficult times, we are proud that the City has retained its rating and increased its outlook while continuing to improve the quality of life for our residents,” said Mayor McGlynn.
In connection with Moody’s rating, the City’s Bonds were purchased at market for 1.99% which reflects the true interest cost (TIC). This resulted in a decrease in interest expense from the most recent projection submitted to the City Council of $643,000. Moody’s highlighted the City’s strengths as 1) Recent history of structurally balanced operations, 2) low direct debt burden, 3) stability of local economy enhanced by institutional presence and 4) large, favorably located tax base with redevelopment potential. Per Moody’s “the City’s ‘Positive Outlook’ reflects the city’s improved financial position. Improving long-term credit strength will depend on the city’s ability to continue to build its reserves…”
While there are other projects being reviewed at present, such as the DPW Yard and the Police/Fire Headquarters, Mayor McGlynn stressed that “The City needs to continue to preserve and build its reserves in order to maintain this “Positive” outlook and possibly increase its ratings. This ranking determines the interest rate we will pay on future bond orders. The higher the ranking, the more solid a community is and the lower the interest rate on bonds.”
The $8,885,000 loan order is part of the City’s Capital Plan entitled “Chart the Course.” The Plan name reinforces the ideal of Medford:
Community History Accessibility Recreation Technology
Included in this loan order are the following projects:
– Hormel Turf Field $360,000
– Sidewalks $500,000
– School Technology $3,300,000
– MHS Pool $1,925,000
– Fire Station Upgrades $1,800,000
– Storm Drainage $1,000,000
In regards to the Hormel Turf Field, this project was completed last June and was recently dedicated at the Home opener for the Mustang football team. We anticipate rental revenues to cover the cost of operating the field and the bond. For those interested in walking the track, it will be open from 7 A.M. to 11 A.M. weekdays with supervision on site. We are putting together a plan for additional public use for times when organized activities are not booked. This will be announced shortly.
The Sidewalk rehabilitation project is well under way. Of the $500,000, approximately $300,000 has been expended since spring. The remaining work will be performed as weather permits and into the spring of 2013.
The School Technology Plan has moved forward on schedule and all schools are now operational with the first phase of the rollout. The next two phases will be completed over the next two months as we add mobile devices for special education and enhance teacher utilization of iPad devices.
Another project at MHS is the High School Pool. Mayor McGlynn said: “I have just named John “Jack” Buckley to be the Owner’s Project Manager for this endeavor. He began on October 8, 2012 and we are eager to see this project up and running in the near future. I will name a working committee comprised of Department Heads, a Swim Coach, and the Athletic Director to provide input to Buckley.”
A key component to this loan order is the upgrades to the fire stations throughout the community.
“We have been working with the architect firm, Maguire Group, to prioritize and plan for the project,” said Mayor McGlynn. “We believe the work will begin in the next couple of months.”
Lastly, the storm drainage project is in process. This project will encompass flooding issues that are occurring in the North Medford/Lawrence Estates area.
“We want to thank all of the citizens that have participated in the public process for these projects as well as the City Council and School Committee for moving the program forward,” said Mayor McGlynn. “We are eager to move the DPW Yard construction schedule along in order to capture the favorable interest rate environment that we are currently in.”