Scituate Secures Low Interest Rate of 3.23% on $45 Million Bond for Cushing Elementary School and Critical Infrastructure Projects
SCITUATE - December 2 - In a major financial victory for Scituate taxpayers, the Select Board voted unanimously on December 2 to award a $45 million general obligation bond at a 3.23% interest rate — significantly lower than the 4.75% rate estimated when voters approved the projects. The favorable borrowing terms will save residents 17% over the life of the 20-year bond compared to original projections.
The Full Story
Finance Director Nancy Holt presented the bond sale results to the Select Board, revealing that competitive bidding and favorable market conditions had produced what she characterized as exceptional terms for the town. Scituate received 11 bids for the bond, with offers coming in within 10 basis points of one another, demonstrating strong demand for the town’s debt.
The 3.23% true interest rate represents a significant improvement over financial advisor Hilltop Securities’ October estimate of 3.5%, and comes in dramatically below the 4.75% rate used when projects were presented to voters in 2024. “We said consistently, when we’re estimating these projects, we’re going to give you a conservative interest rate, but we can do better,” Holt told the board.
The $45 million bond package includes approximately $25 million for the new Cushing / Hatherly Elementary School — the first installment of borrowing for the project. Holt indicated the town expects to spend approximately $40 million on the elementary school construction by June 2026, meaning additional borrowing will be necessary. However, town officials deliberately limited this first bond issue to avoid placing too large a burden on the tax rate all at once, and to position the town to potentially secure even better rates if market conditions continue to improve.
Additional projects funded in the bond include portions of the North Scituate sewer expansion design, waterways improvements at Cole Parkway, and water main replacements. All enterprise fund projects will be paid from receipts of those funds rather than property taxes.
The bond maintains Scituate’s Double-A Plus credit rating from Standard & Poor’s, which was confirmed on November 13. While the rating methodology changed slightly — with the town scoring a 5 out of 6 under the new system — Holt explained that Standard & Poor’s has restructured ratings across all municipalities, making direct year-over-year comparisons difficult. The rating agency cited concerns about debt and pension liabilities, particularly the state retirement system which the town cannot directly control.
Select Board member Susan Harrison expressed frustration that recent town financial policy improvements did not result in a rating upgrade, though Holt clarified that in the current environment, avoiding a downgrade represents success. “They’re not upgrading anybody. They’re only downgrading people,” Holt explained.
For taxpayers, the impact of debt exclusions will rise modestly from $669 on the average tax bill last year to $685 this year — just a $16 increase — as the old high school project debt rolls off and is replaced by the new Cushing / Hatherly school and water treatment plant debt coming online. Holt projected a larger increase of $200 to $250 next year when the new school reaches its first full year of debt service and additional water treatment plant borrowing begins.
The water treatment plant financing continues through the state’s Clean Water Trust revolving loan program. The town has already converted one interim loan to permanent financing at a 2.2% net interest rate with approximately $500,000 in loan forgiveness. A second loan of $15 million is scheduled for conversion in February at an estimated 2.4% rate, also with $300,000 in loan forgiveness. A third loan for $10 million is currently estimated at 1.9%, though that rate may drop further with additional subsidies. Holt noted the town will likely need a fourth loan for the water treatment plant as the project progresses quickly.
The board also approved a $227,680 contract with T Ford Company for emergency repairs to the Cole Parkway seawall. The project, which received Federal Emergency Management Agency (FEMA) funding covering 75% of costs, will address approximately 50 damaged concrete blocks along the seawall surrounding the harbor parking lot. Town Engineer Sean McCarthy explained the repairs will be made above the waterline to minimize permitting requirements and must be completed before the harbor opens for the season. The town’s share amounts to approximately $57,000.
In other Select Board business, the board conducted interviews for the newly formed Cushing School Reuse Committee, hearing from nine candidates for six at-large positions. Candidates included neighborhood residents Dana Gillis and Matt Mauro from Aberdeen Drive, who emphasized their stake in what happens to the property given its central location in their community. Matt Goehlert, president of Scituate Little League, made a strong case for sports field use, noting the town’s shortage of facilities for growing youth programs, particularly softball which now has nearly 200 participants but insufficient fields for home games. Other candidates included Ben Erwin, a recent college graduate interested in representing younger voices; systems engineer and Coast Guard veteran Liam Slein; environmental specialist Alicia Verong; Mike Westort, who led the North Scituate playground project; and others with various professional backgrounds in leadership, project management, and community service.
The Select Board received and unanimously approved budget recommendations from the Capital Planning Committee for fiscal year 2027. Committee Chair Michale Gibson presented a $16.65 million capital plan, with approximately 59% ($9.78 million) requiring borrowing — though that percentage is skewed by two large projects: a $2.5 million police firing range and a $6 million sewer headworks upgrade. The committee recommended approval of most departmental requests but voted against several items including the annual $180,000 MS4 stormwater compliance reporting (which they argued should be in the operating budget rather than capital), a $100,000 Cole Parkway gazebo replacement (premature given ongoing waterfront planning), an $85,000 pickup truck for the fire department (deemed unnecessary), $62,925 for library platform painting (questioning the approach and longevity), and a $200,000 Scituate Harbor mooring field redesign (lacking detailed plans and cost estimates).
The committee also expressed concern about a $137,000 fire suppression canopy for a new gas tank at the DPW yard, noting it had not been discussed when the tank itself was approved the previous year and effectively doubles the cost of that project. While they voted 3-1 to recommend it based on the fire chief’s safety determination, they questioned why the requirement wasn’t identified earlier. Capital Planning Committee member Chris Carchia indicated that code does not actually require the canopy but gives the fire chief discretion to require additional safety features.
The Beautification Commission presented its fiscal year 2027 budget request of $45,000 (the same as the prior year) and requested an expansion of its mission statement to include education and support for protecting and restoring natural landscapes, not just traditional beautification plantings. Commissioner Sytske Humphrey and specialist Della Shepard outlined the commission’s extensive work over the past year, including two gardens at the Modecai Lincoln property featuring period-appropriate plants from the 1750s, improvements at the Maritime Center and Lighthouse area, and plans to work on traffic islands that haven’t been updated in decades. The expanded mission would allow focus on projects like rain gardens, marsh protection, and education about native plantings that improve water quality. The board unanimously approved the mission statement change. The commission also received an $800 donation from George Humphrey for bright-colored safety t-shirts for volunteers working along roadsides.
Department heads presented their fiscal year 2027 operating budget requests in a marathon session. IT Director Mike Minchello renewed his request for a fourth full-time employee, noting that his three-person department handled approximately 2,000 support tickets in fiscal year 2025 while also completing major projects including implementing the new Mark 43 police/fire CAD and records management system, conducting cybersecurity exercises, connecting six additional water and sewer sites to the fiber network, and managing increasingly sophisticated cyber threats. Minchello noted the department now supports more than 200 end-users across eight distinct entities, with 60 new networks added from water and sewer infrastructure grants. The position was not included in the Town Administrator’s recommended budget.
Fire Chief Mark Donovan reported the department is nearly fully staffed for the first time in years, with six recruits entering three different fire academies in January. He noted retirements and potential disability retirements will likely create new vacancies soon, requiring another hiring cycle after the first of the year. The department expects to respond to approximately 3,600 calls in fiscal year 2025, including about 1,600 ambulance transports — a dramatic increase from under 2,000 total calls when Donovan started in 1989. Donovan requested one additional position to help with command structure and fire prevention duties but acknowledged the tight fiscal environment. A significant budget increase of $31,000 in medical supplies resulted from South Shore Hospital discontinuing its linen exchange program; the fire department now contracts with Southwest Linen Company for sheets and blankets rather than switching to disposable paper products that Donovan said would be inadequate for patient care. The department also received a $1,000 donation from Petrocelli Insurance Adjusters for the new dive truck/special operations vehicle.
Police Chief Mark Thompson presented a level-service budget after his request for an additional officer — which included a federal COPS grant application that would have covered 75% of the cost — was not funded in the Town Administrator’s recommendations. The grant application was ultimately unsuccessful. Thompson highlighted the department’s successful implementation of the new CAD and records management system as a major accomplishment requiring significant effort from officers and the IT department. Budget increases include changes to the CAD/RMS subscription costs and the need to replace an end-of-life LiveScan fingerprinting device that was originally purchased through a Plymouth County grant approximately 15 years ago; Thompson indicated the department is working with the state Executive Office of Public Safety and Security to find funding for the replacement. Communications dispatch, which operates under a new supervisory structure with a police sergeant handling day-to-day operations, saw budget adjustments primarily reflecting the reallocation of a supervisor position’s funding from dispatch to police.
Veterans Services Director Joshua Summers presented his fiscal year 2027 budget at the same level as fiscal year 2026. He highlighted ongoing work on the Cudworth Cemetery expansion, collaboration between the American Legion and VFW post on fundraising and programs, and continued growth of the Chapter 115 program that provides monthly stipends to eligible low-income veterans. The $78,000 Chapter 115 budget line is reimbursed by the state at up to 75%, making the town’s actual cost much lower. Summers also outlined progress on the Veterans Center project, explaining that the $286,000 capital request includes fiber optic installation, workstations, cameras and security systems, ADA-compliant exterior work including curb cuts and sidewalks, a new heat pump to replace the outdated HVAC system, and cosmetic improvements. The VFW donated $600 to the Veterans Advisory Council from proceeds of a lobster bingo fundraiser.
Town Accountant Nancy Holt presented her department budget showing a $24,130 increase driven primarily by $14,250 in increased audit costs and $9,800 in contractual salary increases and steps. The department continues to hold a full-time bookkeeper position vacant for the second consecutive year as a budget savings measure.
The board opened the warrant for the annual spring town meeting scheduled for April 13, 2026, and approved renewal of drain layer licenses for five companies: Ringler Excavating Corp., D’Allessondro Corp., Iaria Brothers, Lankas Earthworks, and PEN Excavations. Town Planner Lauren Melendy informed the board that the Planning Board will hold a workshop on December 11 regarding four proposed zoning bylaw articles that include setback changes and new definitions.
Why It Matters
The exceptionally low 3.23% interest rate on the town’s $45 million bond represents a significant win for Scituate taxpayers who will pay hundreds of thousands of dollars less over the 20-year life of the bond than originally projected when they approved the new Elementary School and other projects. The modest $16 increase in debt exclusion costs this year — despite major construction beginning — demonstrates the town’s careful approach to staggered borrowing and phasing in new debt as old debt retires, minimizing tax impact while maintaining the AA+ credit rating that keeps borrowing costs low. For residents concerned about the cost of the $300+ million school project, these first bond results provide tangible evidence that actual costs may come in well below conservative estimates, though additional borrowing will be necessary and future interest rates remain uncertain. The continued favorable terms on water treatment plant financing through the state’s loan program, with interest rates in the 2% range and hundreds of thousands in loan forgiveness, further demonstrates the financial benefit of the town’s infrastructure investments.
Key Motions & Votes
Motion: Award bond for December 2025 general obligation municipal purpose loan of 2025 bonds to the lowest bidder. Outcome: Approved. Vote: Unanimous. (Timestamp: 0:52:40)
Motion: Award contract for repair of Cole Parkway seawall to T Ford Company for $227,680. Outcome: Approved. Vote: Unanimous. (Timestamp: 1:01:03)
Motion: Approve proposed amendment to Beautification Commission charge to add language about educating and supporting protection and restoration of natural landscapes. Outcome: Approved. Vote: Unanimous. (Timestamp: 1:49:10)
Motion: Accept $800 donation from George Humphrey for Beautification Commission t-shirts. Outcome: Approved. Vote: Unanimous. (Timestamp: 1:49:41)
Motion: Accept $1,000 donation from Petrocelli Insurance Adjusters for fire department dive truck/special operations vehicle. Outcome: Approved. Vote: Unanimous. (Timestamp: 2:20:20)
Motion: Accept $600 donation from VFW Post 3169 for Veterans Advisory Council. Outcome: Approved. Vote: Unanimous. (Timestamp: 2:41:20)
Motion: Open warrant for annual spring town meeting on April 13, 2026. Outcome: Approved. Vote: Unanimous. (Timestamp: 2:44:03)
Motion: Approve renewal of drain layer licenses for five companies. Outcome: Approved. Vote: Unanimous. (Timestamp: 2:44:33)
Public Comment
No public comment period was held during this meeting. The meeting consisted primarily of candidate interviews for the Cushing School Reuse Committee and presentations from various department heads and committees on their fiscal year 2027 budget requests.
What’s Next
The Select Board will complete interviews for the Cushing School Reuse Committee at a subsequent meeting and make appointments to the six at-large positions. Department budget hearings will continue through December as the board works toward developing the fiscal year 2027 budget for presentation at the April 13, 2026 spring town meeting. The Capital Planning Committee’s recommendations will be considered as the board finalizes the capital plan. The Planning Board will hold a workshop on December 11 regarding proposed zoning bylaw changes. The Beautification Commission will hold its Wreaths Across America ceremony on December 13 at Cudworth Cemetery at noon. The town will continue to monitor bond market conditions for potential additional borrowing for the Elementary School project at favorable rates. Cole Parkway seawall repairs are expected to be completed before the harbor opens for the season in spring 2026.