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Board approves parameters resolution to refinance GON debt, citing about $3 million in annual savings
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Summary
The board approved a parameters resolution to refund portions of its 2013 and 2020 General Obligation Note series; presenter said the transaction is expected to produce roughly $3 million per year in debt-service savings over seven years and requires DCED approval before sale.
The Bensalem Township School District board voted to approve a parameters resolution authorizing the refunding of portions of the district's 2013 and 2020 General Obligation Note series.
Mister Murray (speaker 17), who presented the proposal, said the resolution is on a parameters basis because final interest rates and sale timing are not yet fixed. "This will ostensibly refund a portion of the twenties and all of the 2013," he said, and later stated the plan would produce "debt service savings of approximately $3,000,000 per year over the next 7 years." He explained the transaction requires advertisement, a DCED review (about 23 days after advertisement) and a rating call before sale.
Board members asked whether the refunding would affect the district's credit rating; the presenter responded that routine refundings typically have no material impact on ratings because the transaction does not increase indebtedness. After brief discussion the board took a roll-call vote; the motion carried with the recorded responses shown by name in the roll call.
The presenter noted the district will wait for DCED approval and finalize the numbers in an addendum on the day of sale; the resolution authorizes the administration to complete required public actions to incur the debt once the sale details are known.
