Proposal: Bond refinancing procedure to be streamlined in certain cases

TRENTON – The Local Finance Board proposed a measure today that if passed will help streamline approvals in some instances.

The Board hopes to adopt a new rule regarding requests for certain bond re-fundings so that the towns, schools or counties would not have to first come before the Board.

The problem applicants sometimes face, according to Board Chairman Tom Neff, is that they want to refinance bonds to take advantage of lower interest rates, but by the time they receive Board approval their window of opportunity has closed and the interest rates have risen.

The Board seeks to adopt a new rule so that in some cases, the applicant will not have to first appear before the Board, so long as later on they report back to the Board, certify the savings that the refinancing will lead to, and make sure that in no year will their payment be higher than it would have been otherwise.

The new approach should reduce the waiting time and lead to taxpayer savings, the Board stated.

The proposal will be published in the N.J. Register with an eye toward eventual adoption.