Lerch, Vinci & Higgins, LLP

Dieter P. Lerch, CPA, RMA, PSA Addresses Officials at NJMMA

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February 25, 2011

Dieter P. Lerch presented a session to  municipal and government officials during New Jersey Municipal Management Association's (NJMMA)  recent training session. Entitled "Refunding Your Debt" the session was presented in collaboration with Steve L. Rogut, Esq. of Rogut McCarthy LLC.

He began a financial analysis with an explanation of refunding, which is when an issuer refinances outstanding bonds by issuing new
bonds. Municipalities refund for a number of reasons, such as to achieve debt service savings, alter restrictive or burdensome covenants/terms of a current bond; consolidate debt; or to restructure for cash flow purposes.
issue. To be worthwhile, the threshold should provide at least 3% net present value savings.

Mr. Lerch then described the types of refunding - current, advanced and defeasance.  He explored the various factors to consider before refunding, and explained the costs involved. Paige Fischer, the firm's bonding expert, was on hand to answer any technical questions.

Following the financial analysis, Mr. Rogut presented a legal analysis.

The New Jersey Municipal Management Association (NJMMA) is an organization of professional local government administrators & assistants whose goal is to improve the quality of local government in New Jersey through professional management. The Association creates an information network offering the free flow of ideas thereby enhancing each member’s ability to deal with the problems & pressures of the profession.


Certfied Public Accountants

17-17 ROUTE 208 FAIR LAWN NJ 07410 (201) 791-7100  Fax (201) 791-3035 dlerch@lvhcpa.com