TribLIVE

| Neighborhoods


 
Larger text Larger text Smaller text Smaller text | Order Photo Reprints

Steel Valley directors to terminate participation in interest rate swaps on debt

Friday, March 28, 2014, 1:06 a.m.
 

Steel Valley school directors have adopted a resolution that will terminate the district's participation in interest rate swaps on debt.

“These instruments have uncertainty,” said Superintendent Edward Wehrer, who called for the termination.

While the district said it currently earns about $42,000 annually and has made about $500,000 since it started participating in the investment tool based on fixed and floating interest rates nine years ago, Wehrer said market fluctuation could put taxpayer dollars at risk.

All school directors except Michael Terrick supported the resolution.

Terrick said he wanted additional time to study the issue.

Terminating the swaps could cost the district as much as $199,000, with up to $150,000 in penalties being paid to Deutsche Bank and Bank of America for early termination contracts the district has with those banks. The district expects to pay about $49,000 in fees for the termination.

In other business, the school board gave final approval to hiring John Zenone as the district's business manager at a rate of $106,000 annually. Zenone, who will serve as director of operations, board secretary and right-to-know officer for Steel Valley, was awarded a four-year contract that includes annual raises of up to 1.6 percent.

Eric Slagle is a staff writer for Trib Total Media. He can be reached at 412-664-9161, ext. 1966, or eslagle@tribweb.com.

Subscribe today! Click here for our subscription offers.

 

 
 


Show commenting policy

Most-Read McKeesport

  1. Lincoln roadway reopens ahead of schedule
  2. Twin Rivers Intermediate students get hands-on science lessons
  3. West Mifflin thrift store sells winning lottery ticket
  4. St. Agnes students assist food bank during Catholic Schools Week
  5. Former Century III Mall general manager waives charges
  6. Overall Mon-Yough homicide stats remain steady
  7. 2 firefighters injured battling Munhall blaze
  8. Mon-Yough agencies providing services for the homeless to benefit from HUD funds
  9. McKeesport Area communications specialist develops mobile app
  10. Attempted homicide charge dropped, others remain in Glassport stabbing
  11. Munhall council president charged in crash that injured woman