Moorestown Refunds $20.1M In Water, Improvement Bonds

MOORESTOWN, NJ — Moorestown Council gave final approval to a proposal to refund $20.1 million in general improvement and water utility bonds Monday night. The proposal includes the following items:

• $4,840,000 of an $8,297,000 general improvement bond issued in August 2010;
• $2,045,000 of a $3,492,000 water utility bond issued in August 2010;
• $9,950,000 of a $16,950,000 general improvement bond issued in July 2013; and
• $1,385,000 of a $2,450,000 water utility bond issued in July 2013.

To finance the cost of refunding this money, the township would issue negotiable refunding bonds of no more than $20,100,000, according to the proposed ordinance posted on the township's website.

The money is being refunded in order to save in debt service as a result of lower interest rates in the bond market, according to a copy of the proposed ordinance. The gross debt of the township will be increased by $20,100,000, with $18,573,900 representing what is being refunded and what will be taken away from the gross debt. Up to $350,000 for items permitted under state statute is included in the proposal.