By Lauren Otis, Staff Writer
Princeton Township’s competitive bond sale of $8 million of municipal debt — held Dec. 16 — was a big success, Township Chief Financial Officer Kathy Monzo told the Township Committee yesterday morning.
”We were thrilled with the bond sale. We had a total of seven bidders, which was great; it was very competitive,” said Ms. Monzo in an interview following the meeting.
PNC Capital Markets won the electronic bidding process, offering a 4.018 percent interest rate over the life of the 15-year bond $8 million, Ms. Monzo told committee members at their final meeting of 2008. Other bidders were Roosevelt & Cross; Commerce Capital Markets; Sterne, Agee & Leach; Morgan Keegan; FTN Financial; and BMO Capital Markets.
Despite constricted credit markets in the current economy with some municipalities having trouble obtaining financing, the township’s AAA bond rating was behind the success of the debt sale, according to the municipality’s financial advisors, Ms. Monzo said.
”These bidders are clamoring for triple-A communities. There are only a handful like us around the country,” she said.
At its meeting, the committee also formally adopted a resolution for 2009 debt service requirements, totaling $6,435,206 in principal and interest payments for the coming year plus $444,119 in debt service for the township’s affordable housing utility.
Resolutions also were adopted for township participation in state and Mercer County cooperative purchasing systems for several 2008 expenditures. A total of $100,000 was earmarked for road salt and sand purchased from International Salt Co. from November 2007 through 2009 through the county program.
Through the state contract purchasing program, the township paid $200,000 and $150,000, respectively, to Majestic Oil and Riggins Inc. for fleet fuel needs in 2008. In addition, $69,000 was paid to Delaware Office Equipment, $60,000 to Dell Computer Corp. and $35,000 to Dyntek for computer, printer and copier supplies.
