Greensburg Salem eyes $230,000 savings with bond refund

The Greensburg Salem School District is hoping to take advantage of rock-bottom interest rates to refund some of its debt, a move that is expected to save about $230,000 over six years.

The school board Wednesday unanimously approved borrowing up to $13.25 million and using that money to pay off existing bonds issued in 2013 and 2015.

The new bond would not extend the life of the debt. It would be paid off by 2026, the same year as the district’s existing debt is set to be paid, according to district Business Manager James R. Dzurica.

“This opportunity was made possible because of the historic low interest rates currently in the bond market,” Dzurica said.

Officials moved quickly to make the deal happen in order to get the best interest rates possible. The board usually does not vote on any items during its agenda meeting on the first Wednesday of every month, but it held a special voting session this week to OK the plan.

“We have been able to fast-track to get this deal to market in less than a month, which is unheard of,” said Alisha Henry, managing director of PNC Capital Markets, which worked with the district to arrange the bond refunding.

The board wanted to have the deal in place before November, because experts are unsure what effect the upcoming presidential election will have on interest rates, said school board President Ron Mellinger.

The district hopes to be debt-free by 2026. Last year the board approved borrowing $13 million to pay for school repairs, but the decision was reversed the next month after the school board election.

Voters elected Brian Conway and Jonathon O’Brien, who opposed the divisive bond, to replace Charlotte Kemerer and Nicholas Rullo, who supported it.