Much like consumers who seek to improve finances through debt refinancing at lower interest rates, Warrington Township issued a recent request for proposal (RFP) to do the same thing.
The township asked local financial institutions to bid on the opportunity to refinance its financial vehicles. Bidding institutions evaluated three Series of debt:
- General Obligation Bonds, Series of 2021 A and 20212 B
- General Obligation Note, Series of 2016
Eleven area banks submitted 21 proposals.
TD Bank submitted the most favorable plan. It estimated a net present value savings of $274,400.
The TD Bank approach also provides reduced interest rate exposure of $338,700, making the total amount of savings/reduced interest rate exposure $613,100.
“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.”
The Board will consider adopting the debt refinancing ordinance at its August meeting.
It will also be available via Zoom.