Caldwell School Bonds Refinanced, BOE Expects $500K Savings

West Caldwell, NJ – Board members of the Caldwell-West Caldwell School District announced on Monday that the district has refinanced bonds from its 2008 bond referendum at a lower rate in a deal that is expected to reduce future debt payments by almost $500,000.

According to Board of Education members, the deal refinanced bonds that the district issued in 2008, which financed projects that include the construction of James Caldwell High School’s Center for Performing Arts, replacement boilers and roofs at multiple schools, kitchen renovations and upgrades at the middle and high schools and new windows at the middle school.

The school will issue S&P rated Series AA bonds, resulting in a 6.1 percent saving on the outstanding bond proceeds, administrators stated.

The actual annual savings is expected to be between $54,000 and $56,000 per year through fiscal year 2025, administrators said.

The new 1.61 percent interest rate takes effect in 2017, which is the earliest date at which the school district is allowed to refinance, school administrators stated.

“We saw an opportunity to lock in at the lower rates now and acted on it,” Superintendent of Schools James Heinegg said. “The result is a decrease in the total interest on the bonds of nearly $500,000, a savings that we can happily pass on to our taxpayers.”

“Much like homeowners seize the opportunity to refinance houses when interest rates drop, the school district took advantage of lower market interest rates and locked in at these low rates now even though they won’t take effect until 2017,” Business Administrator Thomas Lambe added. “This refinancing produces cost savings to ratepayers and supports our continuing efforts to minimize costs.”

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