Borrowing and Lexington Town Meeting
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The Town engages in both short-term and long-term borrowing. Long-term loans (greater than one year) are usually secured with a bond to finance major Town projects such as the construction of buildings or sewers or the acquisition of conservation land. An article for which borrowing is proposed must be passed by at least two-thirds of the Town Meeting. Borrowing for major expenditures allows the cost of the project to be spread over several years.
Short-term loans are those which must be repaid within one year. Such loans are sometimes used to finance expenditures or purchases which will later be covered by a major long-term bond issue.