Highlands council adopts resolution to issue up to $12,056,592 in bonds, consolidate sewer projects with NJ Infrastructure Bank loans

The Borough of Highlands council voted Feb. 18 to adopt Resolution R26-67, authorizing the form and details of general obligation bonds not to exceed $12,056,592 and providing for their sale to the New Jersey Infrastructure Bank under the state’s 2026 Water Bank program. The council also adopted the companion resolution R26-68 authorizing loan and escrow agreements with the New Jersey Infrastructure Bank and the New Jersey Department of Environmental Protection.

A staff member (Staff member, S6) explained these measures “consolidate all of our existing sewer projects with the I Bank,” and said the borough will close with the I-Bank and begin repaying debt service once the loan converts project receipts to a payment schedule. "Eventually, we'll have a closing with the I Bank to turn all of our money collected into a loan payment payable to the I Bank," the staff member said.

Council members offered, seconded and carried the resolutions on recorded votes during the meeting. The transcript records the resolutions’ titles, the approved maximum principal amount ($12,056,592) and that the sale and loan agreements proceed through the New Jersey Infrastructure Bank and the State Department of Environmental Protection.

The resolutions authorize staff to execute loan and escrow agreements and to complete the administrative steps required for borrowing and closing with the I-Bank; the exact repayment schedule, interest rate and long-term fiscal impact were not detailed in the meeting record.

Next steps indicated in the meeting record include executing the loan documents and moving toward a closing with the I-Bank; further budgetary effects will be reflected in future financial reports and meetings.