Warrington Township has announced that at the Board of Supervisors meeting held Tuesday, July 27, 2021, Township Manager Barry Luber and the Township’s Financial Advisor, Chris Gibbons of Concord Public Financial Advisors, Inc. presented to the Board a summary of bank proposals received for refinancing of the Township’s General Obligations Bonds, Series of 2012 A and 2012 B and the General Obligation Note, series of 2016.
John Marcarelli, Warrington Township Director of Finance, had analyzed the feasibility of proceeding with a refinancing at this time and recommended that the Township proceed with issuing an RFP. The Township received 21 proposals from 11 area banks. TD Bank submitted the most favorable proposal with a net present value savings of $274,400, well in excess of the net savings the Township authorized at a previous Board meeting. The TD Bank proposal also provides reduced interest rate exposure of $338,700, making the total amount of savings/reduced interest rate exposure $613,100.
When the Board compared the TD Bank proposal to the current bond market, they learned that the Township will save more by accepting TD Bank’s proposal, since it provided the most flexibility for the Township.
“Because of the Township’s strong bond rating, coupled with very low interest rates, the Township was able to lock in a fixed rate of 1.23% for the entire 15-year term of the loan,” said Bill Connolly, Member, Board of Supervisors. “When a Township practices sound and careful financial management, as this Board has for the last five years, good things happen for the taxpayers.”
Bond Counsel, Ernest R. “Bucky” Closser of Curtin and Heefner LLP law firm was authorized by the Board to advertise an ordinance authorizing the incurrence of debt for the refinancing of the three abovementioned Series of debt.
“By refinancing some of the Township’s debt at historically low interest rates, the Board of Supervisors will have the ability to borrow funds in the future to finance capital projects without having to raise taxes to do so,” said Mark Lomax, Member, Board of Supervisors.
The Board will consider adopting the ordinance at its August 10, 2021 Board of Supervisors meeting. The meeting will be open to the public and made available via Zoom.For more information about theBoard of Supervisors meeting, go to https://www.warringtontownship.org/community/calendar/.For those attending in person, masks are required for those not vaccinated, per CDC guidelines.
About Warrington Township
Warrington Township is located in central Bucks County, approximately 20 miles north of central Philadelphia. The Township encompasses 13.5 square miles, bordered on the north by New Britain, Warwick, and Doylestown Townships, on the east by Warminster Township, and on the south and west by Montgomery and Horsham Townships.
Warrington Township is an outstanding community in which to live, work, shop, learn, and recreate with many unique opportunities to enhance the quality of life for those who reside, work, or visit. The goal of the township is to responsibly manage community change and protect community character and assets; preserve the natural environment and farmland; improve mobility; provide adequate township services and public facilities efficiently and equitably; and promote the economic and social well-being of the community. The township is committed to protecting the township, improving the quality of life, sustaining its neighborhoods, and serving the health, safety and welfare of its residents and businesses. For more information, visit http://www.warringtontownship.org.
