Mt. Pleasant to refinance bond, earn district $580,000
Mt. Pleasant Area School Board will see savings in the amount of $580,000 coming its way very soon.
Investment banker Robert Aumer with Janney Montgomery and Scott reported to the board Tuesday the refinancing of a bond issue will result in the substantial savings that will be spread out over six years.
With interest rates just higher than two percent, a savings was expected, but Aumer said the final savings was more than $100,000 more than had been estimated last November when he first came to the board to talk about the opportunity.
The district will see a savings of $110,000 in bond payments for the first year, approximately $80,000 the next four years and about $65,000 the final year.
Aumer said while the savings can be used in any way the district sees fit, he reminded the board the savings will last just these six years — after that the district will go back to paying what it had annually before the refinance.
The total amount of the new bond issue the district will be securing will be in the amount of $5,420,000.
While Director Denver Hudec was absent, all other board members voted in favor of adopting a debt incurring resolution to refund the existing bond indebtedness of 2008 for savings purposes.
In a work session meeting following the special meeting, directors approved several resolutions that will be on the agenda for the board's regular meeting next Monday.
Some of the resolutions that directors will be asked to approve include the Westmoreland Intermediate Unit general operating budget for July 1 of this year through June 30 of next year totaling $5,361,530 with the district's contribution of $17,426.68.
Under building and grounds, directors will look at approving the payment of construction and capital project bills, awarding bids to the lowest responsible bidders for masonry and paving and sealing projects.
The board will consider approving several improvement projects at different schools throughout the district that will be paid for from the capital improvements account.
The board will be asked to consider an agreement with the University of Pittsburgh at Greensburg for the student-teaching program that will be effective from 2013-17. This will allow students at that school who are enrolled in the education program to meet student teaching requirements within the Mt. Pleasant Area School District.
Rachel Basinger is a freelance writer.