.

School Bond Closes With Historically Low Interest Rate

As a result, taxpayers will pay more than $500,000 less in interest on the debt to upgrade the school facilities, a project approved by September's referendum.

 

Princeton Public Schools have closed an $11 million bond with a historically low lending rate of 1.43 percent, much lower than the anticipated 2.5 percent. 

That means substantial savings for taxpayers, according to the district's Business Administrator Stephanie Kennedy. In September, officials estimated the tax impact from a 2.5 percent interest rate would result in less than $150 a year for the average home assessed in Princeton. 

Now interest on the debt will be more than $500,000 less than was originally projected, according to Mary Lyons, a financial advisor with Pheonix  Advisors, who helped with the sale of the bond.

“This means that we can get all of the projects done for fewer tax dollars over 10 years than we had originally projected,” Kennedy said.

Several factors led to the lower interest rate, including the district's Aaa rating by Moody's, which was re-affirmed this month. The Aaa rating is held by only a handful of school districts in New Jersey, according to district officials. 

The district will now proceed with its planned construction projects, many of which will go out for bid in February and be completed by Fall 2013.

In September, voters approved a $10.9 million bond for facilities improvements in the district. 

Among the projects to be completed:

  • turning the old John Witherspoon Middle School gym into a media center
  • energy efficiencies throughout the district
  • new safety surfaces for the elementary school playgrounds 
  • a generator for the middle school
  • upgrades to the baseball facilities
  • replacing the turf field, track and bleachers at the high school

To see a full list of the school's district's proposed list of improvements, click here.

Keep up with Princeton news by liking us on Facebook, following us on Twitter and subscribing to our newsletter.

Simon January 29, 2013 at 09:07 PM
Such a deal when I'm already paying almost $12,000 annually for my little shack. This must be my lucky day!

Boards

More »
Got a question? Something on your mind? Talk to your community, directly.
Note Article
Just a short thought to get the word out quickly about anything in your neighborhood.
Share something with your neighbors.What's on your mind?What's on your mind?Make an announcement, speak your mind, or sell somethingPost something
See more »