Refinancing of 2013 bond could save $650K

$9 million was initially borrowed to fund township recreation center

The $9 million bond was meant to pay for construction of the township’s community and recreation center.

Significant savings could be on the way to Montgomery Township, by refinancing a bond originally borrowed three years ago for construction of the township’s community and recreation center.

“In order to take advantage of current interest rates, we’re targeting an aggressive timeline to realize possible savings in excess of $650,000,” said Finance Director Ami Tarburton.

In February 2013 the township’s supervisors voted to borrow $9 million, meant to pay for construction of the township’s community and recreation center, located at Stump and Horsham Roads, and refinance a bond from the previous year that covered the costs of acquiring that property. At that time, township officials said they hoped to keep the annual debt service payments on the new bond below the millage currently dedicated for repayment of debt, and therefore prevent the need for any tax increase.

After the bond was authorized in February 2013, public feedback on the rec center was accepted for much of the rest of that year, and a contract for construction of the center itself was awarded in April 2014. Ground was broken later that summer, and the center opened in late 2015, and an advisory board of township residents to give feedback on the center and its operations was formalized that November.

Back to today: Tarburton told the township supervisors Monday that the next step toward completing a refinancing is to pass a formal ordinance outlining the parameters of the refinancing, which would be passed at the board’s Sept. 12 meeting. The ordinance is currently being drafted and reviewed by the township’s bond counsel, Tarburton said, and will be publicly advertised by Sept. 7 in order to meet that deadline.

Montgomery’s board voted unanimously to advertise the proposed refinancing ordinance, and did the same to approve one purchases: a new police interceptor for the township’s Police Department.

According to police Chief Scott Bendig, three vehicle replacements were budgeted for 2016, and two were approved in January; the third will buy a 2016 Ford Police Interceptor to replace a 2011 Ford interceptor with over 104,000 miles, according to the Chief.

By using the state’s COSTARS cooperative bidding program, Bendig told the board, the department received a quote of $27,671.18 for the police vehicle, a discount of 14 percent off of the manufacturer’s suggested retail price of $32,435 and a savings of $4,763.82.

Three local nonprofits also received checks from Montgomery’s board Monday night, per annual donations included in the township’s budget each year.

A check for $10,000 was given to the Montgomery County Norristown Public Library, and library Executive Director Kathy ArnoldYerger introduced Tom Fluharty, head of Bookmobile services for the library. The library’s Bookmobile has been visiting the rec center every Thursday and Friday since July 1, and Arnold-Yerger said it will continue to do so to gauge demand from residents.

Lisa Knapp Siegel, president of the Montgomery Township Historical Society, accepted a $6,000 check for that organization and said it would likely be used for new doors on the house at the Knapp Farm, the historic home on Knapp Road which was settled around 1700 and was owned by the Knapp family from 1835 to 2003.

“We have some really vintage 1960s doors on (the house) that need to be replaced,” Knapp Siegel said. The society has also recently updated a booklet of township history, and more information on the society and its upcoming events can be found online at www.KnappFarm.org.

Mary Metz, board President of the PEAK Center, accepted a $3,000 check and said that money will help fund meals and events for local senior citizens. In early October, the PEAK Center will complete a move into the North Penn Commons, a joint building under construction at 606 E. Main St. in Lansdale adjacent to the Lansdale Branch of the North Penn YMCA.

“We’ll have four nonprofits coming together, sharing resources, and the PEAK Center is very excited to be a part of it,” Metz said.

“Thanks to all of you for making the community better,” board Vice-Chair Candyce Fluehr Chimera replied.

Montgomery township’s supervisors next meet at 8 p.m. on Sept. 12 at the township administration building, 1001 Stump Road. For more information or meeting agendas and materials visit www. MontgomeryTwp.org or follow @MontTwp on Twitter.