Montgomery's Potential Rec Center Payment Plan
Township Manager Larry Gregan outlined the township's potential plan to fund a $9.6 million community center, which includes boosting its bond market rating to AAA
Township Manager Larry Gregan Monday night laid out the township’s plan on how it’s going to potentially pay for a project that the township estimates will cost $9.65 million. First, it will borrow $5.3 million in bonds, at a 2.5 percent interest rate, for 30 years. Second, it will look to finance a 2012 open space loan of $5.5 million at a locked-in 2.5 percent interest rate for 30 years. The loan, at present, is a 20-year loan at 2.5 percent, with a 7-year reset. The township will soon begin talks with Standard & Poor to boost its bond rating from AA+ to AAA. “We are looking to take advantage of the all-time historic lows in the municipal bond market. (Market rates for bonds for AAA and AA rates) dropped in half — an average of 4.6 to 4.…
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