District to Save $650,000 through Bond Refunding
The Penn-Delco School District Board of Directors recently completed a bond refunding transaction which will save the district approximately $650,000.
The Board passed a resolution to allow Penn-Delco’s financial advisor, Boenning and Scattergood, Inc., to begin the development of a finance plan to investigate potential savings through a bond refunding. The bond refunding would take advantage of lower interest rates and reduce the district’s overall debt service.
The school board later adopted a parameters resolution that defined the minimum savings the school district would require before entering into a bond refunding. At that time the potential savings associated with the district’s 2010 bond series was estimated at $600,000.
In December, Boenning and Scattergood marketed the district’s bonds and were able to issue bonds with a savings exceeding the original estimate and totaling approximately $650,000. The savings will be primarily distributed over the next two years in the form of lower interest payments for the district.
Dr. George Steinhoff, Superintendent of Schools, stated, “We are of course pleased with the savings that will accrue as the result of the refinancing through bond refunding. Proactively responding to more advantageous funding opportunities is the right thing to do for our district taxpayers and helps limited funds go a longer way for our schools and programs. The School Board and Business Office did an excellent job with this refunding”.