$3.3M Saved With Bond Sales in Southern Lehigh
Southern Lehigh School District looks to save more than $260K per year for next five years, gets Aa2 bond rating.
The sale of a 2006 and a 2008 bond will save the Southern Lehigh School District around $3.3 million, higher than originally estimated by the district.
"We had hoped to save $2.5 million [over five years]," said district finance director Jeremy Melber. Melber attributed part of the brisk sale to Moody's affirmation of the Southern Lehigh School District at the Aa2 bond rating.
James Schlesinger, an adviser at Concord Public Advisors, offered congratulations to the board on its rating. "Having an AA rating is outstanding."
Money from the sale of the bonds will go to pay down SouthernLehigh's outstanding debt. Southern Lehigh's debt service stands at 12.5 percent, or about $29.8 million.
The auctions, which happened Monday, drew a total of around 40 bids between the two, said Schlesinger. The money from the auction will refund the bonds on call, with the 2006 bond payout in March 2013 and the 2008 bond payout in May 2014.
Last year, the school board approved the 2012-2013 budget with a .5 mill increase, about $46 per district household. The board decided to hold the line and not increase the millage if at all possible at the Oct. 11 meeting.