Dover Area SD financial advisers outline plan to refinance 2018 and 2019 bonds, project roughly $2.5M in savings

A representative from Raymond James told the Dover Area School District Board of Directors at its planning meeting that the district's 2018 and 2019 bond series have upcoming call dates that create a refinancing opportunity that could save the district roughly $2.5 million in cash-flow over the life of the issues.

The presenter, identified as a Raymond James representative, said the 2018 bonds are first eligible to be called on April 1, 2026, and the 2019 bonds on April 1, 2027. "With current market interest-rate levels and expectations of further Federal Reserve cuts, it's a good time to consider tax-exempt refundings if your bonds are callable," the representative said during a presentation and question-and-answer period.

Raymond James's analysis projected issuing approximately $27,635,000 of new bonds to refund the 2018 series, pay issuance costs and set up required escrows. The firm showed a scenario that would produce roughly $200,000 a year in net debt-service savings beginning in 2028 and a total cash-flow reduction of about $2.5 million, before the state's share of savings is applied.

Why it matters: the district's 2018 and 2019 borrowings were used…