MILLSTONE — The township’s school district is ending 2011 with anticipated financial benefits for the coming years. By refinancing bonds, the district is slated to save more than $1 million over the next decade.
Back in September, the Board of Education authorized the issuance and sale of its refunding bonds in the aggregate principal amount not to exceed $17,600,000.
At the time, the board hoped to save as much as $900,000 over 10 years by locking in a rate. All steps were completed, including a public hearing.
However, as Business Administrator Bernard Biesiada reported at the December board meeting, the market turned in October and the anticipated savings were not there, so the process was halted.
The market has turned again, so the bonds were refinanced on Dec. 6, he said .
Rather than $900,000, the school district will save as much as $1.1 million in debt service over the next decade, or $120,000 per year, according to Biesiada.
“It’s not going to reduce taxes, but it balances the levy out,” he said. “It’s $1.1 million the school district does not have to raise for the next 10 years.”
Board President Kevin McGovern clarified that it is not actual money saved, but money the district doesn’t need to raise.
The refinanced bonds were issued in 2002 and 2004. The payments for the 2002 bond finish in 2018, while the 2004 bond payments finish in 2022, but there is another series of bonds that must be paid until 2031, he said.
Biesiada also announced that the first draft of the 2012 school budget should be available for the board at its Jan. 23 meeting.
However, it will lack state aid and other revenue stream information at that time, he said. The initial rollout of the budget to the public should occur at either the Jan. 30 or Feb. 6 meeting.
McGovern said the March 5 meeting would be the earliest tentative adoption of the budget by the board, but he asked if the state aid information would be available by that date; he noted that such information was usually provided later than that. Biesiada said he should have the release date for state aid numbers in January.