Office of the Mayor – West Windsor Township
May 21, 2008
FOR IMMEDIATE RELEASE
Contacts: West Windsor Township
Shing-Fu Hsueh, Mayor
West Windsor Township Realizes $687,000 in Bond Savings
West Windsor Township recently issued $16,790,000 in General Obligation Refunding Bonds consisting of $9,990,000 in General Improvement, $2,180,000 in Pool Utility and $4,620,000 in Open Space Refunding Bonds. Mayor Shing-Fu Hsueh is pleased to announce that the bonds were sold at a true interest cost of 3.26%, yielding a savings totaling $687,000 over the life of the bonds. The new bonds will replace bonds previously issued in 1998 and 2001 bearing higher interest costs.
New Jersey Local Bond Law requires a municipality to achieve at minimum, a 3% present value savings in order to issue refunding bonds. Mayor Hsueh stated, “In the current volatile market, our prestigious Standard & Poor’s credit rating of AAA allowed the Township to achieve the required savings needed to finally complete the transaction that has been in the works since 2004.” Township Bond Counsel Edward J. McManimon, III concurred saying, “The refunding that the Township just completed, which produced significant debt service savings, is a classic example of the benefits derived from a AAA credit rating.”
Standard & Poor’s (S&P) Rating Services assigned its AAA long-term rating to the Township’s general obligation refunding bonds. The prestigious “Triple-A” rating is the highest available rating shared by only six other municipalities in the State of New Jersey.
S&P explained the rationale for assigning West Windsor Township this rating in a recent report citing its rapidly expanding local economy; sound commercial base; above-average wealth levels; consistently solid financial performance characterized by sound reserve levels; and overall favorable debt position coupled with modest future borrowing needs.
Throughout the bond refunding process, the Township received technical advice and guidance from Phoenix Advisors, LLC of Bordentown, NJ; McManimon & Scotland of Newark, NJ; and William Antonides & Company of Wall, NJ.
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