Clearfield Area School District could save money via debt financing

By Jeff Corcino Staff Writer

Low interest rates are likely to save Clearfield Area School District $70,000 or more on its debt financing.

At last night's committee meetings of Clearfield Area School Board, Jamie Doyle, senior management consultant of Public Financial Management of Harrisburg, the district's consultant, said historically low interest rates can save the district approximately $69,890 if it chose to refinance $5.98 million in outstanding bonds.

Despite the latest of the bonds maturing in 2013, the district can still realize substantial savings because interest rates are extremely low now and the new bonds would have an interest rate of currently between 1.33 percent and 2 percent.

By refinancing the bonds, the district would be able to keep the same debt payments as it does now but would receive $69,890. This savings includes the cost of the bond refinancing and bond counsel, Ms. Doyle said.

If the district acts now, the bond refinancing could be done by April 9. She said interest rates could change by then so the current figures are not guaranteed. But, she said the district could place a floor on how much it would save and if the bond refinancing doesn't meet this number, the refinancing wouldn't occur.

In addition, the school district would be able to save an additional $15,000 if it can refinance $434,535 in bank notes, but she said she has to check with the bank first to see if this is possible or if there is any penalty.

The district's business manager, Sam Maney, said he saw no downside to the district refinancing its debt and recommended the board do it. Ms. Doyle also said she saw no disadvantage to refinancing.

Board member Dave Glass said the board could not vote on the measure because it was only a committee meeting and asked if it would delay the refinancing if the board waited until its board meeting next week to do it. Ms. Doyle said it wouldn't because she said she could start the paperwork now for it to be approved next week as long as there was a consensus of the board that it would be approved.

No one on the board objected to refinancing and agreed that the minimum savings to the district should be $30,000.

In other business:

the district welcomed its new superintendent, Dr. Richard Makin of Curwensville. Dr. Makin attended his first school board meeting last night and today is his first official day on the job.

"I am extremely exited about joining the district, I am really looking forward to it," Dr. Makin said. "I have a lot of work in front of me.

For the past few weeks Dr. Makin said he has been in contact with and reaching out to the various stakeholders in the district.

Dr. Makin was formerly the superintendent at Purchase Line School District.

the following appointments will be presented for approval at next week's meeting: Sid Lansberry, head baseball coach; Brandon Billotte, varsity assistant baseball coach; Barry Kline, varsity assistant track coach; Steve Miller, varsity assistant track coach; Melyssa Jacob, middle school head track coach; Dealyn Taylor, open records officer; Robert Dixon, head girls' softball coach; and Rodger Porter, varsity assistant softball coach.

Also, John Haight, seniority transfer from part-time weekend custodian at the high school to full-time afternoon custodian at the high school; Kristie Lord, seniority transfer from 5½-hour specialized assistant to 6.45-hour specialized assistant; Tammy Byerly, seniority transfer from 4.55 hour specialized assistant to 4½-hour special education assistant at the middle school; Janel Paffie, substitute health and physical education teacher; Teresa Dixon, substitute specialized assistant; Sheila Hunter, substitute teacher; and Jason Zalno, full-time substitute technology education teacher.

the Ski Club is requesting approval to travel to Holiday Valley, N.Y., Saturday and Feb. 7 for a ski trip. There will be 47 students and four chaperones attending.

Penn State DuBois Continuing Education is requesting use of a classroom at the high school March 11, 18 and 25 and April 1 from 5:30-8:30 p.m. to offer non-credit workshops. The university is also requesting a classroom on Saturdays through February 21 from 9 a.m. to noon for an SAT course that will be taught by Kevin Wallace, who is also a vice principal at the high school.

the administration is requesting authorization to apply for a dual enrollment grant from the state Department of Education.

The grant would provide $21,000 for tuition, fees and books for 11th- and 12th-grade students enrolled in college credit classes taken at the high school.

There are approximately 100 students in the program, according to Bruce Nicolls, director of curriculum/instruction, coordinator of federal programs.

the administration is requesting authorization to apply for $15,000 from the state Department of Community and Economic Development to purchase a 3D printer for use in the technology classroom.


Source

The low interest rate of refinancing to school help the parents save money, it can reduce the financial benefits.