Good News on Capital Project

sfegley  posted on: 09/21/09 01:34 PM

Bernie Donegan's office bid our borrowiing yesterday and we received a low bid of 3.11% from Fleet Bank. That means that as of February 25, 1999 we will borrow 1.2 Million at that low 3.11% rate of interest. We will then immediately invest that money at a rate of 4% or more ( we will bid the CDs) and start earning money on our borrowing while we wait for SED to approve our plans. As long as we sign contracts by next February, we'll be fine, and the longer we sit on the money the more interest arbitrage we make. ( Arbitrage is legal for schools and municipalities). Valerie at Donegan's office said it was the lowest borrowing rate she'd ever seen! Congrats, you guys, we're off to the right kind of start...