Commissioners consider refinancing
Should Bethlehem Township refinance its $10 million debt, especially now that it is paying variable rate interest? At their Jan 21 meeting, commissioners heard a presentation from financial consulting firm PFM. The switch from fixed to variable rate of interest has already cost the township $75,000.
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 Northampton County and Allentown School District and Bethlehem Area School District.