At last week’s board of education meeting, Board Secretary and School Business Administrator Connie Stewart shared that a 25-year bond issued in 2005 was refinanced, per state law, as interest rates are currently low.
Outstanding bonds from that year were refunded in 2013 and the presented resolution would repeat the process for the outstanding 2013 debt. The bond is carried over from the 2013 action.
It was created after a referendum passed in 2005 for renovations and additions to Lenape, Cherokee and Shawnee high schools.
“The net present value savings, if it’s over 3 percent, districts are required to refinance their bonds,” Stewart read from a document. “Right now, the net present value savings is over 4 percent.”
The refinancing measure is expected to save more than $1 million for the remaining 10 years of the bond. It affects the interest paid and not the principal amount. She clarified it will not lengthen the lifetime of the bond and will be paid according to the original agreed upon terms.
“This will result in a direct savings to our taxpayers,” she stated.
Board members later unanimously voted to adopt the ensuing resolution on the bond’s interest rate. It will hold its next meeting Oct. 14 at 7:30 p.m. The location is yet to be determined. Visit LRHSD.org to view the meeting’s agenda.