USC School District Anticipates Savings
Refunding bonds with lower interest rates should help district's financial picture.
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A better interest rate on bonds is projected to save Upper St. Clair School District more than $3 million.
The school board voted Monday to authorize investment banking firm Boenning & Scattergood to proceed with preparations to refinance a 2005 bond issue. The agreement will be prepared for action by the board at its Sept. 10 meeting.
“This seemed to be a very opportune time as we look to the future,” said Frosina Cordisco, district director of business and finance, noting that interest rates may fall as low as .6 percent in the current climate.
The 2005 bonds are for a total of $25.52 million, with a final payment date of 2027. Nearly $11.5 million in interest payments would be due under the interest rates at the time of issuance. Refunding the debt service cuts the interest payments to about $7.4 million.
Most of the savings will occur between 2013 and 2020, according to figures (see PDF) presented by Michael Bova, managing director, public finance, for Boenning & Scattergood. During the first five years, annual payment on the principal will be nominal.
“We’re pretty happy with the savings we can deliver to the school district,” Bova said.
In September 2011, the district refinanced a 2006 bond issue, reducing payments by a projected $400,000.
Dr. Patrick O’Toole, superintendent of schools, said the savings come at an opportune time, especially considering the district’s mounting financial obligation to the state Public School Employees' Retirement System, along with other expenses.
“This may help allow us not to furlough some people,” he said.
The school board also voted to retain Lisa Chiesa of Thorp, Reed & Armstrong as bond counsel. The firm has worked with the school district on previous bond issues.
Glenn Robinson
12:30 pm on Wednesday, August 29, 2012
Will this make my taxes go down? I didn't think so.....
Oren Spiegler
5:35 am on Thursday, August 30, 2012
Mr. Robinson is correct. Of course this savings will be meaningless to the beleaguered taxpayers just as the multi-million-dollar concessions recently made by Upper Saint Clair teachers to save their colleagues' jobs did nothing to mitigate the breadth of this year's mammoth tax hike, the maximum allowed by law. It will enable the Board to spend more money and/or to accumulate more of our money purportedly to meet future obligations. It is a windfall for the Board members, not for those who pay the freight.
Parent
7:34 pm on Thursday, August 30, 2012
My kid's elementary level classhas 29 kids this year. So do all the other classes in the same grade. I was told this grade had 22 kids per class last year. 28 more kids spread over 4 classes in one grade, at one school? Did that many more kids in that grade move into the district between May and August in our area--or did the school or the district fudge the numbers the year before? Maybe they furloughed 1 teacher that they really needed, despite saving money on bonds and getting the maximum tax increase asked for? Did that many kids leave another school and come back to Baker in that same period? Or did we accept kids from outside the district in our school?
We are brand new to the district, having just bought our home here. We had researched the heck out of the area and all top 10 districts before making this expensive choice and I question now, if we made the right one for our child.
29 kids per class at this tax rate and for the rep this district sells itself on, is ridiculous. I keep reading that the number one predictor of school success for most kids is small class size-- or small student-to-teacher ratios, which could be achieved with a larger classroom, using fulltime in-class aides.
What exactly is going on here?
Lynne
9:53 am on Friday, August 31, 2012
welcome to money hungry, tax and tax and spend, looks good from the outside but not the inside, Kingdom of upper st clair!!
Disgusted Doug
1:02 pm on Sunday, September 2, 2012
I have another one for YINZES!
My daughter is in tenth grade, (Not IB) and came home this first week of classes telling us the teachers in History and English told the class they did not have enough books to go around! Therefore they "SCANNED" the books and put them on the Blended Schools web site for all to gain access. GREAT IDEA? Well number one because of an after school activity my daughter cannot access the internet and is now doing this portion of the homework until 11:00PM or later. More importantly THIS IS AGAINST THE LAW! This is a copy right infringement! I suspect there is a lawyer amongst us they can further expound on the law!
Are things really this drastic?
PK3
7:54 am on Tuesday, September 4, 2012
Parent , You will have say next Nov.2013. don't forget.