Refinancing could save $800,000

PRINCETON — The Princeton City Council has taken steps to refinance four bond/loan instruments which could save the city $800,000 in interest through the life of the bonds.

At Tuesday’s meeting, the council heard from Bob Vail with Bernardi Securities Inc., who outlined his company’s projected savings to Princeton by refinancing the city’s long-term bonds and loan instruments. With interest rates at near record lows, Princeton could realize a significant savings on its outstanding debts, Vail said. Bernardi Securities is a municipal underwriting firm based in Chicago.

The four debts include a 1999 loan taken out for a construction project at the wastewater sewer plant; bonds taken out in 2003 to build the city’s new water tower; debt certificates issued in 2008 to buy the 133-acre logistics center/commercial park site; and a commercial note taken out last year for several capital projects in the electric department, including the automation of engines at the plant, the installation of catalytic converters and the purchase of the hybrid bucket truck.

Vail said he would go first to Princeton’s local banks for their bids, and the security company would discount its service fees for the local bank handling the refinancing.

After further discussion, the city council adopted the ordinances to go ahead with the refinancing project; a public hearing is set for March 5 and tentative final approval on the refinancing project is expected at the council’s April 2 meeting. The council adopted the necessary ordinances giving Bernardi Securities the authority to negotiate interest rates with local banks.

After Monday’s meeting, Cain said the city has worked before with Bernardi Securities and the company has done a good job for the city.

In other business at Tuesday’s meeting, the city council tabled an option to enter into an agreement with “Today in America” media services to produce a five-minute promotional video of the city of Princeton. The video would be shown in a 20-slot package on Fox Business and CNN Headline News television. Once the 20 slots are shown, the city then receives the video to use as it chooses. The cost of the project is $19,800. The council unanimously agreed to table any action on the proposal.