$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.
Stew
7:56 am on Tuesday, February 12, 2013
THANK YOU Mr. James Snell for this awesome return on the taxpayers finances. Even after your retirement you are still benefiting the taxpayers!!!! I guess it is safe to assume that School Board will hire another administrator with the windfall of money? After all given the fact that there are more administrators in this district then five years ago and larger class size it makes sense to hire more for administration. I have a wild idea, hire more aides and teachers to work with the kids. How about no pay increase for the top administrators (Central Office) during this time period?
John Schubert
8:01 am on Tuesday, February 12, 2013
Stew, how 'bout you get the state and federal government to withdraw their useless rules and paperwork requirements, and then the district won't need personnel to comply with those requirements?
John Schubert
7:57 am on Tuesday, February 12, 2013
$3 million in savings -- that's what happens when the board and administrators work hard to run a tight ship. Congratz!
Reality
9:47 pm on Tuesday, February 12, 2013
Mr. Snell did a great job at the school, but remind me how someone that retired 2 years ago helped save money with bond sales last week????
Stew
10:24 pm on Tuesday, February 12, 2013
@Reality: It was Mr. Snell who was in charge of the finances at the time and along with the board at the time under Mr. Joseph Liberati invested in these bonds.
@John my friend, yes we are friends, close friends, perhaps we could send some of our extra personnel to Harrisburg to resolve some of the pension issues. Which our district, as you know has not been funding their portion of the money due.
Reality
3:34 pm on Wednesday, February 13, 2013
LOL WOW. You really dont pay attention ever do you? At that time the bonds were issued at higher rates. The current administartion refinanced them this month, resulting in the savings. Typical.
Chandler
9:33 am on Wednesday, February 13, 2013
Yippee! Does that mean our school taxes will go down?????