Refinancing bonds saves cash for Neshannock schools

NESHANNOCK, Pa. -- Low interest rates worked to Neshannock Area School District's advantage.
Last month, the board advised Greg McClanahan of Public Financial Management of Harrisburg to refinance a loan taken out through the sale of bonds in 1998.
McClanahan advised the board at Thursday's monthly meeting that bonds were sold Wednesday, saving the district $473,000.
The board agreed to refinance the bonds during a special meeting Oct. 24, as long as the net savings did not go below $200,000.
"This is a staggering result. It surprised all of us," McClanahan said.
He said the bulk of the savings will be seen in the next two years.
The district refinanced $8.8 million from the 1998 bond and will add an additional $1.2 million of new money for the construction project at the elementary school to total $10 million in general obligation bonds.
Cliff Pastel, bond counsel from Eckert Seamans Cherin & amp; Mellott, LLC, said the closing of the sale of the bonds would be Dec. 19.
A public hearing regarding the construction project at the elementary school has been changed to 7 p.m. Dec. 12 in the high school cafeteria.
The board approved the purchase of a new electric oven for the elementary school kitchen in the amount of $6,188. The contract was awarded to Tri-State Restaurant Equipment.