May 28, 2020
ROBBINSVILLE/HAMILTON, NJ (MERCER)–The revitalized partnership between Hamilton and Robbinsville Township has provided an opportunity for both towns to benefit financially.With Hamilton sitting on approximately $14.5 million in short-term debt, Robbinsville has stepped in to purchase $4,098,536 in short-term bond anticipation notes (BAN) at an interest rate of 1 percent. Township Council Thursday passed a Resolution authorizing the purchase agreement.
The 1 percent interest rate is significantly lower than what Hamilton would pay in a very volatile bond market triggered by COVID-19, among other factors. Robbinsville taxpayers benefit because their town’s rate of return from Hamilton will be 10 basis points higher than the rate currently provided by its bank.