Township Proceeds with Bond Refinance—at least $415K in Savings Expected

supervisors on Tuesday passed an ordinance that would authorize the township to incur debt of up to $12 million—a financial move that could net the municipality at least $415,000 in savings by refinancing a 2008 bond issue.

The motion passed by a 4-1 vote, with Supervisor Brian Spicer dissenting.

“Too confusing,” he said. “I can’t get my arms around it.”

The ordinance also gives the supervisors the flexibility to choose to borrow about $1.1 million in “new money” that could be used for capital projects.

If the board opted to borrow an additional $1.1 million, it could choose to keep the same payment schedule and pay an additional $40,000 in debt payment each year. The board could also opt to retain the same annual debt service on the bonds by stretching the payment schedule by a few years.

If the new money is acquired, the township would need to spend at least 85 percent of those proceeds within three years or receiving them.

But resident Neil Kelly stood up under the public comments section of the meeting and told supervisors that while he understood the concept of the bonds, he still wasn’t sure which of the options the board decided upon.

That’s when manager Frank Siffrinn suggested that the board hold a special meeting on the matter once the township’s bankers present the administration with a purchase agreement that would contain more information on variables such as interest rates.

That meeting is expected before the board meets for its February legislative meeting.