The Caldwell-West Caldwell School District is cashing in on lower interest rates to reduce debt payments and save money for taxpayers. The Board of Education announced recently that it has locked in a lower rate refinancing bonds from its 2008 Bond Referendum in a deal that will reduce future debt payments by nearly a half a million dollars.

The refinancing resulted in a higher than expected savings, almost twice the expected value, when the district made the decision to take advantage of the lower interest rate. The deal refinanced bonds the school district issued in 2008. The new 1.61 percent interest rate takes effect in 2017, which is the earliest date at which the school district is allowed to refinance.

“We saw an opportunity to lock in at the lower rates now and acted on it,” said Superintendent of Schools Dr. James Heinegg. “The result is a decrease in the total interest on the bonds of nearly $500,000, a savings that we can happily pass on to our taxpayers.”

“Much like homeowners seize the opportunity to refinance houses when interest rates drop, the school district took advantage of lower market interest rates and locked in at these low rates now even though they won’t take effect until 2017,” said Business Administrator Thomas Lambe. “This refinancing produces cost savings to ratepayers and supports our continuing efforts to minimize costs.”

The 2008 referendum financed projects including the construction of James Caldwell High School’s Center for Performing Arts, replacement boilers and roofs at many of the schools, kitchen renovations and upgrades at the middle and high schools, new windows at the middle school and more.

The school will issue S&P rated Series AA bonds, resulting in a 6.1 percent saving on the outstanding bond proceeds. The actual annual savings is between $54,000 and $56,000 per year through fiscal year 2025.

“I believe that we need to be financially responsible for our community and our students,” added Heinegg. “Our taxpayers have supported us and we want them to know that we are grateful and will do what we can to look for ways to minimize the financial impact.”

For more information on the Caldwell-West Caldwell School District, visit www.cwcboe.org.