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sentation and tour of the Town. Participating for the
<br /> Report of the Town were town officials, Robert Whritenour, George
<br /> Treasurer/Tax Collector Costa, Diane Rommelmeyer, David Bailey, and
<br /> myself. Mr. Kopf contacted us on January 16 follow-
<br /> ing their credit committee meeting to report the rating
<br /> The most outstanding event in the Treasurer's office "A2" was assigned to this issue of bonds.
<br /> for fiscal 1997 was the sale of thirty million three hun- Executive Secretary, Robert Whritenour, and I met
<br /> dred sixty thousand dollars ($ 30,360,000)of bonds in with bond counsel, Ropes & Gray, to have Official
<br /> February.This is the largest bond sale in the history of Statement due diligence on Tuesday, January 14, after
<br /> the Town. which, the Official Statement was printed and distrib-
<br /> The sale of the bonds was the culmination of a uted to approximately 200 potential purchasers.
<br /> process that began on December 4, 1993 when the State Street recommended the issue be sold with
<br /> townspeople voted for the construction of a high bond insurance because the savings between an "AT'
<br /> school. Shortly thereafter, I attended the first of many rated issue with bond insurance and an "A2" rated
<br /> meetings with the Town's fiscal advisors from State issue without bond insurance is significant. State
<br /> Street Bank concerning the funding of the project. Street sought bond insurance from FSA, AMBAC,
<br /> Because the State Board of Education funding FGIC and MBIA. We chose MBIA with a bid of 12.4
<br /> would not be received until fiscal 1998, we decided to basis points of total principal and interest. The cost of
<br /> borrow on a short term basis,based on cash flows pro- the insurance ($58,000) provided the Town a "Aaa"
<br /> vided by the project manager. We initially set up a pro- Moody's rating. This exceptionally strong rating is
<br /> jected borrowing schedule based on the cash flows. due to MBIA's guarantee to pay principal and interest
<br /> This borrowing schedule was refined and adjusted as on the bonds. We chose not to purchase a Standard&
<br /> changes were made by the project manager. Poor s rating for an additional $12,000 but instead to
<br /> purchase a Fitch rating for$4,000(a savings of$8,000
<br /> In May of 1995 the Town authorized the borrowing to the Town). The purchase of bond insurance saved
<br /> of one million five hundred thousand dollars the Town approximately 10 basis points (based on the
<br /> ($ 1,500,000) for the renovation of the Town Hall and true interest cost) or$300,000 of interest savings.
<br /> four hundred fifty thousand dollars ($ 450,000) for On Tuesday, January 21, I teleconferenced with
<br /> road construction. It was decided to add both of these State Street to discuss the financing. It was decided
<br /> projects to the bond issue. It was also decided that the not to price the issue on this day because of the
<br /> best time to date the bonds would be February 1, 1997 Holiday (Martin Luther King Jr.'s Birthday) on the
<br /> because the Town does not have any other debt pay- Monday prior and Alan Greenspan, the Federal
<br /> ments in that month. Reserve Board chairman was scheduled to testify
<br /> As the funds were borrowed on a short term basis, I before the Senate Budget Committee at 10:00 am-both
<br /> was able to invest any unexpended funds.From July of events left the bond market unsettled.
<br /> 1995 until December 1997, I earned a total of six hun- On Wednesday,January 22,the bond market firmed
<br /> dred sixty-three thousand six hundred twenty-seven
<br /> dollars ($ 663,627) in interest income on these funds. up and it was decided after a teleconference call with
<br /> State Street to price bonds that day. The bond issue
<br /> As the time for the sale of the bonds was approach- was well received and widely distributed. I was very
<br /> ing we invited Moody's Investors Services to visit pleased with the net interest cost of 5.37021%that was
<br /> Mashpee prior to their rating of the bonds. We then received by the Town.
<br /> began preparing a presentation booklet to which all of The Town expects to receive 58%reimbursement of
<br /> the Town's departments contributed. The booklet the total cost of the high school project, including
<br /> encompassed community history, profile, and services interest, payable in equal annual installments over the
<br /> as well as financial administration, a statistical profile, term of the bonds, from the Commonwealth of
<br /> a financial overview and financial performance. Massachusetts
<br /> On January 9, 1997, after meeting with Charles E. Respectively submitted,
<br /> Procknow, managing director of State Street's public
<br /> finance department, we indicated our preference for a Anne T. Shaw
<br /> negotiated bond sale with State Street. The benefits of
<br /> a negotiated sale included the ability to chose a sale
<br /> date,locking in an underwriter's fee in advance and to
<br /> tailor the interest rate and debt service structure to
<br /> accommodate the Town's budget needs.
<br /> On Friday, January 10, 1997, Ditmar Kopf of
<br /> Moody's Investor Services visited Mashpee for a pre-
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