NANTICOKE, Pa. — Greater Nanticoke Area School District has posted a legal notice of plans to float bonds in an amount "not to exceed" $17.5 million, to be used for "advanced refunding of the school district's outstanding general obligation bond." The move is projected to save about $600,000.
The refinancing plan was proposed at the Sept. 14 monthly school board meeting by financial consultant Mike Vind of FSL Financial Solutions. Vind said current interest rates were low enough to make the savings worth the effort. The bond being refinanced was issued in 2015 at 3.2%, and Vind said the new rate would be a bit above 3%, though the plan would be to make the transaction when rates were at their lowest over the next month or two.
Vind had talked about refinancing about $9 million. The classified ad amount "Not to exceed $17.5 million is considerably higher, but it is not uncommon for districts to seek more than they actually settle for when making such large financial moves.
It is also possible FSL determined more savings were possible by refinancing more of the district's existing debt. According to state-mandated documents drawn up for this year's budget, Greater Nanticoke Area has about $25.5 million in bonds payable.
The ad notes the board will consider a resolution authorizing the move at a meeting "to be held not more than 30 days nor less than three days from the date of advertisement of this notice." The next School Board meeting is scheduled for Oct. 10.
