Lansdale Council OKs $10M Bond Borrowing at .75%
Council voted last week 8-0-1 to borrow $10 million to help fund $20 million in proposed infrastructure repairs. Interest rates are at a 47-year low, according to asset management firm Boenning & Scattergood
Lansdale Borough is going to do business like it’s 1965. Last week, council voted 8-0-1 to approve the borrowing of a $10 million bond at an initial interest rate of .75 percent — a historic rate that hasn’t been seen in 47 years. The bond will be put toward the funding of $20 million in capital infrastructure and building repairs and refurbishments. The balance of the capital reserve funds in 2013 is proposed at $10.9 million; this amount is after a $2 million transfer to the general fund reserve balance, and $11.5 million in investments paid or to be paid. The debt service in Lansdale at present stands at $1.6 million, or 5 percent of the entire proposed 2013 budget. “The debt service will never go over that $2 million threshold,” said …
