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Bond sale nets significant savings

September 14, 2010|By JENNIFER FITCH

WAYNESBORO, Pa. -- A bond sale Tuesday for Waynesboro Area School District debt yielded savings greater than anticipated.

"Your savings were $498,000," Gregg McLanahan told the school board.

McLanahan works for Public Financial Management Inc., the district's financial consultants. He had projected savings of about $200,000 when issuing general obligation bonds for renovations made this summer and $9.1 million of existing debt.

Bank of New York Mellon Trust Co. placed the winning bid during an Internet-based bond sale, McLanahan said. The auction extended nine times because of last-minute bidding, he said.

A few miscellaneous items bring the overall savings to $511,000, McLanahan said.

"I think in our wildest dreams we were hoping for some good results, but I don't think anyone was expecting $300,000 more than what we projected," he said.

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Documents he provided to the school board show the interest rate ranging from 1 percent in 2011 to 3.45 percent in 2015.

The McClure Co. of Harrisburg, Pa., made $3.5 million worth of energy-savings improvements in schools this summer. Work at Fairview and Summitview elementary and Waynesboro Area Middle schools primarily addressed the buildings' heating, ventilation and air-conditioning systems.

Board members thanked McLanahan for his guidance during the weeks leading up to the bond sale. He said much of the credit goes to Waynesboro Area School District Business Administrator Caroline Dean.

"I won't call it found money, but it's a nice thing to hear at a board meeting," McLanahan said.

The savings can be incorporated into the current budget, he said.

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