Warrington board adopts ordinance to refund 2014 bonds, citing interest‑rate savings

The Warrington Township Board of Supervisors voted Oct. 8 to adopt Ordinance 2024‑03, authorizing the issuance of roughly $3.56 million in general‑purpose bonds to refund the township’s outstanding 2014 general‑obligation bonds.

Chris Gibbons, the presenter retained to review the bids, told the board that underwriters submitted multiple competitive proposals and that the township maintained a Moody’s rating in the AA1 range. "I have some great news to share with you this evening, based on the bids that we took today," Gibbons said, calling the underwriter market response unusually strong and noting the low true interest cost from Piper Sandler at about 2.941 percent.

Gibbons walked supervisors through the sources‑and‑uses of the transaction, saying the refunding call requirement totals about $3,759,000 (principal of $3,680,000 plus accrued interest) and that the proposed structure pushes savings into earlier fiscal years while keeping the overall debt maturity unchanged. He said the estimated present‑value savings total approximately $279,000 in today's dollars.

Township counsel from Curtin Heafner explained the legal effect of the ordinance: it accepts the underwriting proposal, authorizes the administration to file required paperwork with the Pennsylvania Department of Community and Economic Development under the Local Government Unit Debt Act, and directs staff to prepare closing documents. The board was told the target closing date is Nov. 12 and that redemption of the 2014 bonds would occur in December.

With no public comment offered, the chair moved to adopt the ordinance and a supervisor seconded the motion. The chair called for the vote; the meeting record shows the motion carried and the ordinance adopted.

What happens next: staff will file the required applications with DCED, proceed toward a Nov. 12 closing if market conditions and approvals hold, and redeem the 2014 bonds in December as described by counsel.