Bond Refinancing Nets Almost $800,000 in Savings

While the Cedar Grove Board of Education initially had hoped to realize a savings of about $500,000 on bonds issued in 2002 for the renovations, the actual savings turned out to be much better than expected at $798,000 — a savings of almost $800,000.

"It was a wonderful sale. We capitalized on near historic lows for interest rates," said Steven Rogut, the board's bond counselor.

Rogut made his comments during a presentation to the board at their Tuesday night meeting on a bond sale that had taken place earlier in the day. 

Board President Frank Mandala explained the bond refinancing was for $6,095,000 of the remaining principal on the bond referendum which is currently at its midpoint for maturing.

With the bonds at their 10-year mark, the board had looked for approval a few months ago to proceed with a bond sale. At the time, it was expected refinancing would yield about $500,000 in savings.

However, when the refinancing sale took place, actual savings did amount to the $798,000 number. Rogut said the inital bonds were financed at interest rates of 4.2 percent while the new bonds have a rate of 1.88 percent.

"We benefitted from the passage of time, plus our double A credit rating," Rogut said. Rogut added analysts were impressed with the board and the township of Cedar Grove.

As for the bonds issued on the approved last year by voters for renovations to all other Cedar Grove Schools (excluding Memorial Middle School), Rogut explained the refinancing on the 2002 bonds will not affect the board's ability to refinance these bonds at a later date.

After Rogut summarized the bond sale, the board unanimously approved the refinancing.

Mandala thanked Rogut for his work.

"We did much better than we thought.  This has been a strong couple of months for refinancing," Mandala said.

Other Board News

The following other items were discussed at the board meeting:

• The board awarded a contract for the removal and disposal of asbestos-containing materials related to door and window replacement at ,  and to New Age Restoration, Inc.
• Board Vice President Joseph Cicala reported the Cedar Grove High School Choir had a successful trip to Austria and Hungary, visiting local high schools and both the home and concert halls where Mozart had peformed.  Cicala is hoping the choir director, Jennifer Foose, can provide an overview to the board at a later meeting.
• TheFSA will host a Night at the Races on Friday, April 27 at the from 7:30-11:30 p.m. To learn more information about this fundraiser, click here.