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Council Approves $2.39M Capital Bond, Rejects $4.37M Water-Sewer Bond
Summary
Monroe Township approved a $2,392,045 bond ordinance for municipal capital improvements but failed to secure the four yeses needed to pass a $4,368,200 water/sewer bond. Residents asked about interest rates and whether reserves should instead fund projects.
On Aug. 3 the Monroe Township Council approved a bond ordinance authorizing $1,882,855 in bonds for $2,392,045 in capital improvements (ordinance o_6_20_26_0_15) and failed to pass a separate $4,368,200 bond ordinance for water and sewer utility improvements (o_6_20_26_0_16) for lack of the four affirmative votes required under state law.
Administrator Kevin McGowan told the council that bond ordinances authorize the township to secure financing for listed capital projects and that separate resolutions will come back for individual project appropriations. He noted recent short-term market access: "In the last round of financing ... we were able to get a great rate for a temporary 1 year note at 2.6%... Long term financing ... market's hovering around 3.5 percent," and emphasized the township’s strong bond rating as a factor in obtaining competitive bids.
Public speakers questioned prioritization and whether smaller purchases should be paid from reserves rather than borrowed. One speaker cautioned that borrowing spreads costs over time while using reserves would raise taxes now; McGowan said the township aims to preserve prudent reserves for emergencies while using bonds for multi-year capital items.
Roll call on ordinance o_6_20_26_0_15 recorded three yes votes and one no; the ordinance passed. For o_6_20_26_0_16, administration explained that bond ordinances require four affirmative votes, and with a 3–1 vote the water/sewer bond failed.
