As Princeton continues to address its short-term growth, city staff have revealed plans for sewer projects that could sustain long-term growth.
“It will fulfill the needs long into the future,” said City Manager Derek Borg. “It could potentially last us through the full buildout of the city.”
During the June 27 regular meeting, James Sabonis with Hilltop Securities, the city’s financial advisor, briefed council about issuing $20 million in certificates of obligation to fund needed capacity expansion for sewer lines.
The total cost for the project cannot exceed $22.4 million with around a 3.73% interest rate on the bonds. It would cover the cost of issuance and the principal for the sewer improvements.
Total interest for the project is expected to be around $18.8 million, adding around $1.2 million in annual principal and interest to the city’s debt, said Sabonis, and the certificates of obligation would have a 30-year amortization period.
“The goal in this is to move forward as quickly as possible,” Sabonis said. “The city has needs, excellent credit and investors are still looking for quality bonds.”
Borg said the decision to move forward with certificates of obligation was because of advice from Hilltop Securities and lack of impact on the tax rate. There is also a possibility that there is no impact to the city’s utility fees, Borg added.
“If this was going to impact the tax rate, it would absolutely go to the voters,” Borg said.
For the full story, see the July 21 issue of The Princeton Herald.
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