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(BARNSTABLE, MA) Debra Blanchette, Town Treasurer, announced that the Town of Barnstable received competitive bids from bond underwriters on Tuesday, February 9, 2021, for a $2,745,000, 15-year taxable bond issue. Robert W. Baird & Co., Inc. was the winning bidder on the Bonds with an average interest rate of 1.20%. The Town received a total of five (5) bids on the Bonds. Bond proceeds will be used to finance private roadway improvements.

Prior to the sale, S&P Global Ratings, a municipal bond credit rating agency, affirmed the Town’s ‘AAA’ bond rating, the highest rating attainable. The rating agency cited the Town’s very strong economy, very strong management with strong financial policies and practices, strong budgetary performance, very strong budgetary flexibility, very strong liquidity, strong debt and contingent liability profile, and strong institutional framework as positive credit factors.

The bids for the Bonds were accepted at the offices of the Town’s Financial Advisor, Hilltop Securities Inc., at 54 Canal Street in Boston, Massachusetts.

The Town was close to finalizing the development of the Fiscal Year 2021 budget when the public health emergency occurred.  Due to this unprecedented event in modern times in was unclear as to the financial impacts to the Town’s revenue stream.  Questions arose as to the proposed budget and whether or not it would still be a viable spending plan.  This was not like the last Great Recession.  There was no precedent to measure the impact on the town’s revenue stream and the costs associated with responding to the emergency were unknown.  We would need to use our collective intuition, instinct and logical rationale to modify the proposed FY 2021 budget and manage the public health emergency. As a result, the Town implemented several steps to secure its immediate financial health.  Adjustments to expenditures in Fiscal Year 2020 were made including a hiring freeze, the deferment of capital projects and a reduction in discretionary spending.  The Town revised downward its proposed General Fund operating budget for Fiscal Year 2021 by $4.2 million.  Additionally, the Town reduced it proposed Capital Plan for Fiscal Year 2021 form $39 million to about $12 million.  Revenue enhancements were also employed including the implementation of contactless payments by moving multiple permits and licenses on-line.  The Town is also closely monitoring its cashflow to ensure cash resources will be available to cover projected operating and capital expenses. As the Town moves to the recovery stage of the public health emergency several strategies are being explored to manage through the crisis including:

• Assessing the impact on the organization and service levels from eliminating funding for vacant positions
• Opportunities to stretch professional development funds
• Sharing personnel
• Reassessing equipment needs
• Scaling back non-essential services
• Re-examine maintenance and replacement standards
• Reducing paper costs
• Creating a remote workforce to reduce footprint - save energy and maintenance costs
• Eliminate low or no-value tasks
• Review software maintenance contracts
• Rethink subsidies/grants
• Reduce scope of capital investment
• Defer certain capital purchases
• Create more advantageous cash flow by delaying payments, monetizing assets and conducting short-term borrowing for vehicle & equipment replacement

Additionally, the Town has been the recipient of several grants from the Federal government to assist with the response to the emergency. A total of $22.9 million has been awarded to date. Most notably is an $18 million award for the Barnstable Municipal Airport which should ensure its financial stability for the next several years.  An application will also be filed with FEMA to reimburse the Town for a portion of its costs associated with responding to this event. Questions regarding the Town’s response to the public health emergency can be directed to Mark Milne, Finance Director by emailing him at mark.milne@town.barnstable .ma.us.

The Town recently received notification from the State Department of Revenue of its Free Cash Certification. Free Cash is the State’s calculation of the amount of cash in the Town’s treasury that is free of all encumbrances at the end of the fiscal year. These funds are available for appropriation. They can be used for supplemental appropriations in the current fiscal year or for the Fiscal Year 2022 budget development. Following is the official notification from the state.