School District of the Chathams refinances $13.0 million in 2014 bonds; schedules vestibule security work

Business Administrator Peter Chiquilla announced the district successfully refunded $13,000,865 of school bonds originally issued in 2014, a move the district expects will lower interest costs and reduce debt service paid by Chatham Borough and Chatham Township.

"The district will achieve a 4% saving on the outstanding interest which should result in approximately 85 to $90,000 of interest saving a year which will directly benefit the borough and township," Chiquilla said.

Chiquilla said the refund will not change the district's operating budget; debt service is funded separately and reductions will flow to the borough and township tax collectors over the remaining term of the bonds, which he said will affect payments through the next 15 years.

Chiquilla also provided an update on facility work. He said the architect confirmed the contractor has received interior security doors needed for the vestibule project and that the installation schedule is being finalized with the aim of completing most work during winter break. "The only item that will be left open after winter break is the transaction window at the high school which should be installed sometime in February because that's not gonna be delivered until late January," Chiquilla said.

Board members asked about procurement and scheduling for planned reconfiguration work at the middle school. District staff said the architect is preparing full scopes; portions of the work will require formal bidding and the district expects to be able to advertise some bids as early as April so contractors can complete labor-intensive interior work over the summer. A district staff member said all work would need to be finished by the second week in August to meet the school calendar.

Why it matters: the refund reduces the district's long-term debt costs and lowers the payments ultimately collected from municipal taxpayers. The vestibule and transaction window work are part of the district's ongoing safety and facilities improvements and have discrete delivery timelines that affect winter- and spring-break schedules.

What’s next: the district will finalize the installation timeline with the contractor and the architect will deliver scopes that will inform which projects must be publicly bid and which can proceed under existing contracts. Chiquilla said he expects bid-ready documents by spring so physical work can occur over the summer.

Speakers quoted or cited: Peter Chiquilla, business administrator; unnamed district staff (project/architecture lead).