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County Saves $2.6 Million with Bond Refinancing

Nine Burlington County municipalities will also realize savings from the refinancing, according to a county release.

Burlington County will realize an estimated $2.6 million savings thanks to a recent $61.2 million capital bond refinancing.

In addition, nine municipalities will see savings, bringing the total to an estimated $5.2 million in interest savings.

“These are serious cost savings at a time when towns need it most,” said Freeholder Director Bruce Garganio. “Best of all, these cost savings translate into tax savings for the taxpayers who are footing the bill.”

The refinancing, to be administered by the Burlington County Bridge Commission through its pooled loan program, will result in the retirement of bonds that were issued for the county and seven towns in aggregate bond sales in 2003 and 2004.

The towns that participated in these transactions, which now stand to benefit from the refinancing, include Bordentown City and township, Chesterfield, Edgewater Park, Evesham, Florence and Willingboro.

In addition, Southampton Township and Wrightstown Municipal Utility Authority will garner savings from the refinancing of loans with the U.S. Department of Agriculture, dating back to 1992 and 1995.

As in 2003 and 2004, the refinancing will advance with the county’s “guarantee” of repayment. This enables the towns to benefit from the county’s strong AA bond rating and realize reduced interest costs.

The approximate amounts originally financed, the amount being refinanced, and the net savings are listed below:

Burlington County — Original: $44.8 million; Refunding: $29.5 million; Estimated Savings: $2.6 million
Bordentown City — Original: $3 million; Refunding: $1.1 million; Estimated Savings: $70,000      
Bordentown Township — Original: $5.9 million; Refunding: $4 million; Estimated Savings: $348,000
Chesterfield — Original: $926,000; Refunding: $650,000; Estimated Savings: $55,000
Edgewater Park — Original: $3.4 million; Refunding: $2.2 million; Estimated Savings: $208,000
Evesham — Original: $7.2 million; Refunding: $4.6 million; Estimated Savings: $483,000
Florence — Original: $5.5 million; Refunding: $3.2 million; Estimated Savings: $204,000
Southampton — Balance USDA Loan - Refunding: $950,000; Estimated Savings: $107,000
Willingboro — Original: $10.5 million; Refunding: $9.7 million; Estimated Savings: $907,000
Wrightstown MUA — Balance USDA Loan - Refunding: $1.3 Million; Estimated Savings: $213,000

Separate and apart from the pooled bond, the Burlington County Bridge Commission is seeking freeholder approval of a $55 million bond issue to fund its capital program for the Burlington-Bristol and Tacony-Palmyra bridges. Funds will be used for structural steel repairs and replacement, deck replacements, electrical upgrades, and other improvements.

Courtesy of the Burlington County Office of Public Information

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