Charlestown High School will benefit from a recent bond sale by the City of Boston.
Mayor Thomas Menino announced that the city has sold $169.2 million of general obligation bonds via competitive sale. Nine different firms bid on the series.
Charlestown High will receive money for a major HVAC and fire safety improvement at the school.
HVAC (heating, ventilation, and air conditioning) is the technology of indoor environmental comfort. HVAC is important in the design of schools, medium to large industrial and office buildings such as skyscrapers and in marine environments such as aquariums, where safe and healthy building conditions are regulated with respect to temperature and humidity, using fresh air from outdoors.
Since the 1980s, manufacturers of HVAC equipment have been making an effort to make the systems they manufacture more efficient. This was originally driven by rising energy costs, and has more recently been driven by increased awareness of environmental issues. In Massachusetts and throught the U.S., the EPA has imposed tighter restrictions. There are several methods for making HVAC systems more efficient. For example, water heating is more efficient for heating buildings and was the standard many years ago. Today forced air systems can double for air conditioning and are more popular.
Some benefits of forced air systems, which are now widely used in schools, churches, schools and high-end residences, are better air conditioning effects, energy savings of up to 15-20 percent.
Menino said the new money bonds were purchased by Bank of America at a true interest cost (TIC) of 2.3 percent to fund $145 million of capital needs.
“Boston remains one of the strongest municipalities in the country thanks to our proven fiscal management,” said Menino. “This latest investment in our public assets takes advantage of extremely low interest rates and makes it more affordable to support the projects that improve our neighborhoods.”
The City also refunded more than $24 million in outstanding debt, saving close to $2 million on a net present value basis. The bonds were purchased by Bank of America at a true interest cost (TIC) of 2.1%.
Boston’s bond rating was affirmed by both Moody’s (Aaa) and Standard & Poor’s (AA+), reflecting the City’s strong financial position and its substantial and economically diverse tax base.
Moody’s has rated the City of Boston triple A since 2010.