BAN for land purchase
July 8, 2003
At an 8am Meeting, the Selectmen signed the loan note to borrow $3.5M for the purchase of the Pawlowski Farm. Bridgewater's Bond Advisors also warned of Bridgewater being placed on 'Credit Watch', with a possible downgrade in our bond rating. This was the result, primarily, of the decrease in available free cash from our reserve funds. Similar to a bank wanting to see some reserve cash for you before approving a home mortgage, bond underwriters like to see 5-10% available cash to carry a town through 'rainy days'. This downgrade will result in future higher borrowing costs for the town.
