Shrewsbury Looks to Refinance Debt

When Shrewsbury Councilman Bill Dodge looked at the books he found that the borough pays more than 4 percent interest on most of its loans, he said, a number that’s significantly higher than what other towns pay.

According to Dodge, chair of the finance committee, more than 10 percent of the borough’s budget is used to pay interest on its debt alone. If he’s right, that means that Shrewsbury, which has a budget of more than $8.8 million, paid more than $880,000 in interest on its loans.

It’s been several years since the borough has last refinanced its debts, he said, noting that another look at that direction might not be the worst idea. If the information he’s collected is correct, there’s a chance Shrewsbury can save some money the next time it pays its bills.

Dodge said a comparative survey of towns throughout New Jersey of comparable size and population to Shrewsbury showed that, on average, they paid well below 3 percent interest on their loans.

“Refinancing could drop (Shrewsbury’s budget) a couple percentage points,” he said.

Though it’s unclear how successful the borough will be if it pursues refinancing its debts, or if and when, depending on the situation, it can, Shrewsbury’s administrator Tom Seaman said his office will look at all possibilities in the future.