Hub announcements

Posted on: July 27, 2017

Township returns to bond market

Interest rates for borrowers with good credit are still low, which prompted Cranberry – which carries a very high Aa1 Moody’s rating – to seek funds for financing the remainder of its current $48 million project wastewater treatment plant upgrade and expansion. At its meeting on July 27, Cranberry’s Board of Supervisors authorized the retention of PNC Capital Markets and Dinsmore & Shohl to begin preparations for a $10 million bond issue this fall, with $8 million for the plant expansion and $2 million for other capital projects. An earlier bond issue for the plant upgrade covered most of the cost, but its proceeds had to be spent within three years – about a year short of the project’s construction schedule. Repayment of the bonds will involve raising customer sewer rates by 50¢ per 1,000 gallons, or about $2.50 a month for the average household. In a separate resolution setting various Township fees, the Board approved the rate increase.

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