Moorestown board reports $108 million bond sale; lower interest trims projected tax impact
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Summary
The Moorestown Board of Education reported a $108 million bond sale that drew seven bidders; a 3.86% winning rate reduced the district's estimated average tax impact to about $590 per assessed home over the life of the bonds, down from a preliminary $659 estimate.
The Moorestown Township Board of Education on Dec. 16 reported the successful sale of $108,000,000 in bonds and a lower-than-expected interest rate that reduces the district's projected tax burden. James, the district business administrator, told the board the bond sale on Dec. 3 attracted seven bidders and that UBS Financial Services was the winning bidder.
"The lowest bidder was 3.86%," James said, contrasting that with the board's earlier estimate that assumed a 4.2% rate. James said the revised rate lowers the average assessed-home impact from an earlier estimate of $659 to roughly $590 when estimated interest earnings are included over the life of the bond.
James said the sale and an upgraded bond rating were the result of about a year and a half of preparation tied to the district referendum and other credit-strengthening work. He told the board that interest-earnings projections and careful investment of proceeds will further reduce net cost over time.
The board discussed next steps for managing the proceeds. The finance committee reported plans to work with NJ ARM to invest bond proceeds while complying with statutory restrictions on use. The board did not vote on any bond-related ordinance at the meeting; James said the administration expects to post final bond-sale documents on the district website once they are complete.
Why it matters: The bond proceeds will fund projects tied to the district's recent referendum. A lower interest rate reduces the long-term fiscal burden for taxpayers and frees up more project value within the referendum scope.
What's next: James said the district expects to receive bond proceeds within days and will present investment-management recommendations to the board in the coming week.