The Haverford Township Board of School Directors on Thursday night voted unanimously to refinance a portion of 2004 general obligation bonds that total $10 million, a move which will save the Haverford Township School District $656,000 during the next four years, they say.
The district’s financial advisor for debt, Jamie Schlesinger of Concord Public Financial Advisors, told the school board that interest rates were even better than expected.
When Schlesinger first spoke to the board about restructuring the bonds at a meeting two weeks ago, he estimated that the district would save about $488,000 to $490,000 through refinancing.
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But on Thursday night, Schlesinger said savings would total about $650,000, with the refinancing reducing the bond interest rates from 4.5 percent to 2.8 percent.
The savings will occur over four years, with the district saving $191,000 next year, $181,000 per year during the second and third years of the loan, and $103,000 during the fourth year, for a total savings of $656,000, School Board Member Larry Feinberg said.
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School Board President Denis Gray said he wanted to emphasize to the public, that the district was not borrowing more money but instead refinancing a portion of existing bonds at a lower rate.
“We’re saving money and it’s a prudent and sound thing to do,” Gray said.
Discussing Governor's Proposed Budget
In other financial matters, Feinberg discussed what the governor’s proposed budget would mean for Haverford School District if it is approved.
Feinberg said the district would lose $60,000 in state funding for the 2012-2013 school year, and if the budget passed, the district will have lost a total of $480,000 in state dollars for the last two years.
Feinberg’s comments were made during board reports.
While the board did not discuss the district budget for next year any further, the preliminary budget which the board approved last month showed a beginning fund balance of approximately $2.4 million and total revenues of about $91.8 million,
However, the district’s budget, which by law had to be submitted last month, before the governor released his state budget proposal, assumed that the district would receive level funding from the state.
The district’s preliminary budget calls for a 26.6689 millage rate that amounts to a 2.49 percent property tax increase.
