June 13, 2014 at 2:40 PM
BERKELEY HEIGHTS, NJ - The Berkeley Heights Board of Education has announced that a recent refinancing of bonds issued in 2006 will result in a substantial savings for township taxpayers during the next 12 years.
The school district took advantage of positive market conditions to refinance $13,970,000 in bonds that were initially issued for the purpose of funding the replacement of roofs, boilers and windows in several Berkeley Heights schools.
“The district received a bond rating of AA+,” explained Donna Felezzola, Berkeley Heights School Business Administrator/Board Secretary. “From an investors’ perspective, the size of the bond offering was attractive and represented a solid book of business.”
The new, refinanced bond series covers the period from June 2015 through June 2026, when the bonds will be paid in full. The refinancing will result in a total savings to township taxpayers of $969,300 over this period; this represents an overall savings of 5% in the debt service obligation of this bond series to the district, according to Mrs. Felezzola. The annual reduction in taxes from the original issuance of the bonds will vary from year to year, but the average annual tax reduction will be approximately $80,000.