The Neary School Building Committee meeting on March 31, 2025, focused on the financial implications of the town's largest capital project to date, with discussions centered on budget management, debt ratios, and potential impacts on the town's bond ratings.

Committee members highlighted that the total budget for the project is capped at $108 million, with built-in contingencies of approximately 11%. The project will utilize a construction management at-risk approach, which allows the contractor to absorb any cost overruns not related to changes in project scope. This structure aims to incentivize cost savings; for instance, if material prices drop, any savings would revert to the town rather than the contractor.

A significant concern raised during the meeting was the project's impact on Southborough's debt ratios and future borrowing capacity. The town's current debt guideline is set at 5% of its total value, which is approximately $3.8 billion. Even with the new project, the town remains well below this threshold, allowing for manageable debt levels.

However, the potential for a downgrade in the town's AAA bond rating was discussed. While there is a possibility of a one-notch downgrade following the project's approval, the overall impact on borrowing costs is expected to be minimal, with only a slight increase in interest rates projected.

The committee concluded that while the project represents a significant financial commitment, the town is in a strong position to manage this debt without jeopardizing its financial health or future capital projects. The discussions underscored the importance of careful financial planning as Southborough moves forward with this major investment in its educational infrastructure.