Home EB Sentinel EB Sentinel News Monroe refinances municipal debt; saves nearly $2.4 million in interest

Monroe refinances municipal debt; saves nearly $2.4 million in interest

 

MONROE – The recent refinancing of $28.5 million in municipal debt will net Monroe Township nearly $2.4 million over 12 years.

Monroe was able to refinance at a rate of 1.25%, replacing an interest rate of 2.93%.

A key reason for the historically low interest rate is the township’s AA+ bond rating, the second highest bond rating assigned by Standard & Poor’s and only awarded to 10% of municipalities nationwide, according to information provided by the township.

Monroe’s short-term borrowing rate is SP 1+, the highest rating available in that category.

Such a strong rating underscores the creditworthiness of Monroe as an issuer of bonds, signifying the municipality has solid financial backing, excellent credit reserves and limited debt, according to the statement.

“Our excellent bond rating continues to provide direct, tangible savings to our taxpayers,” Mayor Stephen Dalina said in the statement. “It reflects our modestly reduced municipal tax rate, strong administrative management, consistent financial operations and low debt.”

With the AA+ rating, Monroe is also being recognized for proactive planning, in which township leaders deliberately limit borrowing, manage emergency surplus, and focus on the reduction and limited use of municipal debt, according to the statement.

“We’ve continually tightened our belt, not spending a nickel more than we must, and the financial services companies have clearly taken note,” Dalina said in the statement. “And township taxpayers continue to reap the rewards.”

 

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