$525K Savings Possible in School Bond Refinance Deal, Officials Say

Cherry Hill taxpayers could be in line to save as much as $525,000 under a proposed school bond refinance deal that could get final approval by the school board Tuesday night.

The refinancing deal on $16.15 million could save taxpayers around $90,000 per year through 2019, when the bonds will be retired, according to Mary Lyons of Phoenix Advisors, who briefed the board on the deal at its work session earlier this month.

That’s thanks to rock-bottom interest rates—Lyons said the district could end up with a rate below 2 percent on the refunded bonds, based on what the market looks like currently.

“I think you’ll be closer to 1.2 percent,” she told school board members earlier this month. “There’s no changes in the debt term, and the savings are level.”

The bond deal would slice a chunk off the district’s debt service, but will only affect that portion of the total budget, which is outside the main, $174 million budget for 2013-2014.

“It won’t necessarily free up money for our budget,” board member Steve Robbins said.

No members argued against the refinance deal—actually the second on this series of bonds, which were originally issued in 1999—which received unanimous support from the school board on introduction, with members calling it a smart move to save taxpayers’ money.

“These rates are historically low—I don’t know that they could go much lower,” board member Elliott Roth said. “The refunding is definitely in the best interest of the taxpayers.”