Manheim Township Commissioners decided at their most recent meeting to cut township borrowings by more than half and to refinance the remaining balance at lower rates. The changes are expected to result in future interest cost reductions for township taxpayers of more than $150 per household. (For more details, see below*).
MT Board President, Al Kling, stated “I am very pleased that our strong cash and reserve position, our AAA rating, and the current market conditions provided us with this opportunity to reduce our costs and continue to help our residents. “
The cost reductions are expected to help offset continuing increases in the cost of providing necessary township services in future years. Despite similar cost increases, over the last eight years the township has not increased municipal taxes (or reduced services) to its residents.
Specifically, MT plans on repaying $9.7 million of general obligation bonds and $1.5 million of a general obligation note prior to the end of 2019 and borrowing $5.0 million in a new ten-year bond financing. The estimated annual interest rate on the new financing is expected to be less than 1.5% and the combined transactions will result in estimated savings of approximately $2.6 million.
Township debt is expected to have declined from $18.5 million in 2011 to $5 million by the end of 2019.