Lower Maran faces $10–13 million shortfall in CIP cash flow; board weighs small bond issuance

Commissioners at the Lower Maran Board workshop on June 24 were told the township will likely need short-term financing to cover capital projects that carry into 2027.

Chief Financial Officer Adam Chumsky distilled the capital projects fund cash flow and said bond proceeds and state utility contributions leave about $7.2 million on hand but roughly $20 million of committed or imminent spending. "That yields a projected financing need between about $10 million and $13 million," he said, depending on how much work is actually billed this year and the contingency percentage the board assumes.

The manager and CFO presented options for addressing the gap. Adam said one approach would be a modest, "bank-qualified" issuance (generally $10 million or less) at the end of 2026 to bridge immediate needs and a potential second borrowing in 2027 if the CIP remains at current levels. He cautioned that market timing and interest-rate moves are uncertain: "If you're out ahead of that, maybe a borrow larger as the township did in 2022," he said, but also noted IRS rules limit how bond proceeds can be invested and that arbitrage constraints prevent treating bond timing as a profit center.

Commissioners pressed staff on timing and size. President Sinai proposed matching debt maturities to expected spending and noted the importance of avoiding rebates to the IRS on invested bond proceeds. Vice President Woodring and others said they want more detail on projected cash flows before deciding how much to borrow.

Chumsky said the finance committee will continue work in July to size any issuance and that staff will present a reimbursement resolution and refined cash-flow analysis in the coming months to preserve flexibility on timing.

Why it matters: the township is coming off two unusually large CIP years supported in part by ARP and other outside funds; staff said 2027 reflects a step down from those record years but nevertheless includes many projects that will require careful cash-flow management. The board’s near-term decisions on borrowing will shape which A (ongoing) projects proceed on schedule and how the township staggers or prioritizes remaining work.

What happens next: staff will return with updated cash-flow figures, financing options and a draft CIP this fall; any bond issuance would be brought to the board for approval after finance-committee deliberation.