Cost of Bonding

On the Town of Hingham web site, they announce their Triple A Bond Rating by Moody's, Fitch and Standard & Poor's, and have even explained "A higher bond rating equates to a better credit rating, and a better credit rating means a lower borrowing cost to the Town."

Does anyone know what the A2 bond rating costs the Town of Middleboro?

October 2, 2007, Moody's Investors Service Press Release: Moody's Investors Service upgraded the issuer rating to A2 from A3 on the Middleborough Gas and Electric Department of the Town of Middleborough, MA. The upgrade incorporates the continued sound performance of the department and its strong cash reserves. This issuer rating is intended to be used as an assessment of the utility's financial strength and ability to honor its financial obligations and contracts. It incorporates the credit characteristics of the municipal electric utility, including its monopoly market position; unregulated rate setting authority; ability to recover costs monthly with a fuel adjustment charge; and sound financial operations and liquidity. The rating also incorporates the potential availability of the Town of Middleborough's liquidity and taxing authority to cure a nonperforming contract.

September 11, 2007, Moody's Investors Service Press Release: Moody's Investors Service has assigned A2 ratings to the Town of Middleborough's $7.95 million General Obligation Municipal Purpose Loan of 2007 Bonds and to the town's $3.49 million General Obligation Landfill Bonds (Subject to Federal and Massachusetts Income Taxation). Concurrently, Moody's has affirmed the town's long-term A2 rating and assigned a negative outlook affecting $34.7 million in outstanding long-term debt. The Series A bonds are issued to permanently finance various town capital projects, including the final tranche of bonds issued to finance the town's share of its junior high school renovation. The Series B bonds are issued to permanently finance remediation of a failed landfill. Both series of bonds are secured by the town's general obligation limited tax pledge as debt service has not been excluded from Proposition 2 ½. Affirmation of the A2 long-term rating incorporates Middleborough's moderately-sized and growing tax base with average wealth and income levels, an affordable debt burden, and a tax base experiencing moderate expansion. Assignment of the negative outlook reflects a significantly narrowed financial position with slim reserve levels which are unlikely to be replenished in the short term.

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As a footnote, the Hingham Web Site contains a great deal of informative information is a user-friendly format, including Financial Documents, Meetings and Minutes, Request for Proposals, Job Opportunities. On the front page of the site, it is announced that Common Cause recognized the site for their award. Doesn't the site define transparency?

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Here's the Town of Middleborough site.