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Bergen Municipal Bank
For Immediate Release:
June 22, 2004 |
Contact:
Keith Furlong
Phone: (973) 427-7990
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BERGEN COUNTY IMPROVEMENT AUTHORITY ANNOUNCES BERGEN MUNICIPAL BANK
Plans to Assist Municipalities and School Districts with Financing of Equipment and / or Capital Projects, Saving Taxpayer Monies on the Local Level
(Hackensack), NJ – June 22, 2004 - The Bergen County Improvement Authority (BCIA), in conjunction with the County of Bergen, today announced Bergen Municipal Bank, a new program that will allow municipalities, school districts and non-profit groups to finance equipment purchases at the lowest available interest rates.
Bergen County will guarantee $10 million through the Bergen Municipal Bank, which would be available to municipalities and school districts on a first come, first serve basis. IRS- certified non-profit groups with governmental backing will also have access to cost savings through Bergen Municipal Bank.
“This innovative program will allow Bergen County municipalities to get the best lease rates available and experience significant interest savings,” said County Executive Dennis McNerney. “By leveraging the financial advantage of the Bergen Municipal Bank, towns can cut down on bureaucratic red tape and pass along any financial savings to the local taxpayer.”
Bergen Municipal Bank will allow Bergen municipalities to finance equipment purchases through administration of a tax-exempt master lease program. These leases will provide the municipalities with flexible term, fixed interest rates that they would otherwise not be able to obtain on their own.
According to Ronald J. O’Malley, BCIA Chairman, Bergen Municipal Bank is the first program of its kind in New Jersey . Prior BCIA bond offerings were pooled once a year saving taxpayer money by utilizing the County’s economies of scale and excellent credit rating, but this procedure was time consuming and had higher fees than the new program. Bergen Municipal Bank allows the BCIA to offer on-demand access for efficient and economical financing.
“Bergen Municipal Bank provides on-demand financing for important capital equipment purchases,” said O’Malley. “BCIA and Bergen Municipal Bank are committed to creating financial savings for Bergen County taxpayers at the local level.
BCIA is committed to establishing cost saving programs that benefit Bergen County taxpayers, Bergen Municipal Bank is an example of our commitment,” said O’Malley.
Commerce Bank won a one-year bid to underwrite the loans. As part of the agreement with the BCIA, Commerce will provide lease rates based upon a percentage of the prevailing Treasury rate of the same duration. Additionally, Commerce has promised to turn-around lease applications within 24-hours, in most instances.
“If towns need immediate access to equipment for police, fire and/or public works projects. All they have to do is go through the Bergen Municipal Bank,” said McNerney.
To qualify, towns would have to submit a one-page application to Bergen Municipal Bank.
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