TA Blog: Chapter 517 of the Acts of 2008
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Below is an announcement from the TA issued on January 17, 2009. | State Legislation Signed For Littleton's Refinancing of Pension Obligation Bonds On January 15, 2009, the Governor signed into law Chapter 517 of the Acts of 2008, An Act Authorizing the Town of Littleton to Issue Pension Obligation Bonds or Notes. This special legislation was filed as a home rule petition by vote of Littleton's October 20, 2008 Special Town Meeting. It was enacted by the House of Representatives on January 5, 2009, and by the State Senate on January 6, 2009. Chapter 517 will allow the Town to save some $250,000 in interest costs over the next 10 years. Article 15 of the May 6, 2002 Special Town Meeting voted “to accept the provisions of Massachusetts General Law pertaining to early retirement.” The liabilities that the Town incurred from that action was $1.13-million, an amount the Town is financing through the Middlesex Retirement System at 8.25% interest, which we pay in our annual assessment to Middlesex. The Town desires to refinance this expense ourselves at a lower interest rate, and to do so required obtaining this special state legislation, which several other communities had obtained previously. The text for Littleton's special act was based on that passed for the Town of Dracut—like Littleton, also a member of the Middlesex Retirement System. Projected savings to the Town of Littleton would be some $250,000 over a ten-year period. Keith A. Bergman, Town Administrator
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