“I don’t think you could have a better time for borrowing,” he said.
“We’ll be thrilled with 3 percent,” Schaffer said.
Schaffer said the cost could hinge on when the city actually borrows the money. Borrowing on such a project is generally spread out over a matter of years. The first borrowing is slated for $9.1 million in June 2014.
Yet, it might develop that the city is better off to borrow more money now, even before it’s needed, in order to get the best rate for the city. Waiting could mean that rates will climb in the interim.
“It’s very complicated,” Schaffer said.
Another helpful development is the new policy of the School Building Authority. In years past, cities and towns were asked to spend for school construction upfront and then wait for reimbursement. Today, the state pays as the project proceeds.