Treasurer says bond rating unchanged, monitored

Arlington selectmen may seek an independent review by the Middlesex district attorney’s of a $1.5 million deficit in the school department’s fiscal 2010 budget, Boston.com reported Wednesday, Sept. 8.

Meanwhile, Town Treasurer Steve Gilligan says Arlington's AAA bond rating has not yet been affected.

 Sept. 7: How Fincom's Dan Dunn sees shortfall

He said he notified Standard & Poor’s on Sept. 2 of the shortfall. "Our financial advisor, First Southwest, has been informed by Standard & Poor’s that no immediate rating action will be taken with respect to the Town of Arlington’s current triple-A bond rating," he wrote in an e-mail Sept. 8.

"However, Standard & Poor’s continues to monitor the situation, and the eventual remediation plan that is to be voted by Town Meeting in November."

The Boston.com story reported that the officials -- including School Committee Chairman Joseph Curro, Town Manager Brian Sullivan and selectmen -- said they did not learn about the extent of the deficit until August, more than a month after the conclusion of the fiscal year.

They say there is no indication that any misappropriation led to the shortfall, but they may invoke an infrequently used law to ask the district attorney's office to track why Superintendent of Schools Kathleen Bodie took so long to report the deficit. The School Committee is also calling for an outside auditor to look into school department budgeting, Boston,com reports.

The story by Brock Parker says selectmen will be discussing the deficit at the board’s meeting Sept. 13, and Chairwoman Diane Mahon said she’s requesting that the matter be referred to the district attorney’s office.

Sept. 4: What are the facts behind the shortfall?