5.20.2019 Mt. Holly Flood
8/14/2019 Rancocas Road
Rails to Trails, Mt. Holly
Setting the Standard:
Mount Holly Municipal Utilities Authority Saves $3.25 Million
On July 10, 2018, the Mount Holly Municipal Utilities Authority (the “Authority”) entered the bond market to refinance the outstanding maturities of its Sewer Revenue Bonds, Series 1998 and Sewer Revenue Bonds, 2007 Series C. At the same time, the Authority released funds to modify the outstanding maturities of its Taxable Sewer Revenue Bonds, Series 2009 A, eliminating this series of bonds altogether. The sale of the Refunding Bonds was enormously successful.
Capitalizing on a municipal marketplace that has experienced stronger demand than supply for most of 2018, the Authority entered the market at a fantastic time; as long-term bond rates continue to remain historically low.
The Authority was able to trim the average rate on its debt from 4.83 percent to 3.47 percent.
The final results produced total debt service savings in excess of $3.25 million. Ratepayers of the Authority will realize approximately $160,000 annually over the next 20 years in debt service savings. Additionally, the Authority reduced the final payment of its debt service from 2038 to 2037, resulting in $1.07 million of savings in that year. These savings are net of all costs of issuing the Refunding Bonds.
“Ratepayers should take heart that the Authority is doing everything possible to find savings and keep rates stable,” said Executive Director, Robert G. Maybury. “The results of this refunding exceeded our expectations, showing that the markets see good things happening here.”
The Authority would like to recognize the following professionals involved in the Bond Refunding who did a fantastic job of marketing and selling the bonds:
Phoenix Advisors, LLC
Parker McCay P.A.
Raymond Coleman Heinold LLP
Brent W. Lee & Co., LLC
Alaimo Group Consulting Engineers
TD Bank, N.A.
M. Jeremy Ostow, Esq.
June 22, 2018
The Authority crew repairing the sink hole on Garden Street, Mt. Holly.