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Board approves refunding of 2016 school bonds; district projects roughly $957,000 in net present‑value savings
Summary
The board approved a resolution to refund callable 2016 school bonds, authorizing issuance not to exceed $13.7 million, with a projected net present‑value savings of about $957,000 and a planned sale date in early November.
The Freehold Township Board of Education voted to approve a resolution to refund callable school bonds originally issued in 2016, the district’s school business administrator said during the meeting.
School business administrator Ira Appetavita told the board the refunding was required by law when net present‑value savings reach the typical 3% threshold and said the district expects to save about $957,000 in net present value over a seven‑year refunding. Appetavita said the refunded issuance will not exceed $13,700,000 and that the district’s financing team expects to distribute the preliminary official statement to investors on or about Oct. 29, with a projected sale date of Nov. 5 and a closing date of Nov. 20. Debt service payments were described as scheduled in February and August over the seven‑year term.
The board opened a public hearing on the refunding ordinance and, seeing no public comment, closed the hearing before taking the vote as part of the finance motions on the agenda. Appetavita noted the resolution requires a two‑thirds majority by law when the savings threshold applies.
Outcome: the finance motions, including the item to authorize the 2016 refunding of school bonds, were approved during the board’s roll‑call/voice vote on finance agenda items.
Why it matters: refunding callable bonds can lower the district’s debt service costs and free up projected savings for other district uses. Appetavita estimated the annual reduction in projected debt service at about $137,000 per year over the refunding period.
