At their Jan 21 meeting, Bethlehem Township Commissioners heard a presentation from financial consulting firm PFM on a way to ease the debt service currently paid on four bank loans. Interest on three of these notes has or will shortly switch from fixed to variable rate. This has already cost the Township $75,000 in interest. PFM wants to assist the township in seeking out a lender who is willing to refinance the loans or consider a bond issue.
With a bank loan refinancing this debt, PFM estimates it can save the Township $256,000. With a bond issue, the savings is estimated at $382,000. If the Township authorizes PFM to proceed by late January, it estimates it can have a new loan in place within 90 days.
Commissioners took no action, but Malissa Davis said she always understand that loans in excess of $10 million should be by bond issue.
PFM already serves a number of local municipalities and school districts. These include Allentown, Bethlehem, Northampton County and Allentown School District and Bethlehem Area School District.
1 comment:
Sell the money pit Community Center, debt resolved then debt free!
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