Although Parkland Business Manager John Vignone often has unpleasant news to report on school district budget issues, he had a positive message to present at the Dec. 4 board meeting.

The district recently conducted a traditional bond refinancing action that will save $1.28 million over the next several years.

Vignone reported on a current situation that has benefitted the district.

"All this 'fiscal cliff' news drives investors to safe havens," Vignone said. "Municipal bonds are extremely safe. As demand goes up, the rates come down."

He said Parkland's fine credit rating also helped the district have a high outcome on the refinancing project.

"A good credit rating helps the district and saves taxpayer dollars," Vignone said.

The bond refinancing was authorized by the board in October through a parameters resolution with a target of at least $500,000 but a projected figure of $660,000 savings.

Vignone worked with representatives of Public Financial Management and RBC Capital Markets to prepare the transaction involving the district's 2007 bonds.

Savings occur because interest rates are considerably lower now than they were five years ago.

The concept is somewhat similar to refinancing a home mortgage to take advantage of lower interest rates on the borrowed amount.

The parameters resolution authorized Vignone and the administration to act at the most opportune time to benefit Parkland.

"We watched carefully to go in," Vignone said. "We hit the sale in the last week of November when interest rates were dropping due to the 'fiscal cliff.'"

He commended the board for having the foresight to make arrangements and have things in line for the right timing.

"Thanks for preparing and working hard for your constituents," Vignone said.

Board member Mark Hanichak gave kudos to Vignone.

"John's constant vigilance and financial team win the day," Hanichak said.

This is the third refinancing Parkland has undertaken in the past 14 months, yielding a combined savings of more than $3.3 million.

Board member Roberta Marcus praised Vignone's skills.

"There is no finer business manager in the commonwealth of Pennsylvania," Marcus said.

Superintendent Richard Sniscak offered his thoughts on the transaction.

"I would like to thank the board for their trust in the administration that allows us to make decisions that benefit the community and our students," Sniscak said. "Without that, we couldn't make these huge savings."