Refinancing of bonds is expected to recoup a windfall $142,000 for Northampton Area School District.

By a unanimous 9-0 vote Monday, the NASD school board, at the recommendation of the administration, authorized the administration to work with Public Financial Management, Inc. (PFM), district consultants, for the issuance of General Obligation Bonds Series B 2014 to refund the district's General Obligation Bonds Series 2006, 2007 and 2009, via a Parameters Resolution, on March 10 for a net minimum savings target of 2 percent.

Jamie Doyle, PFM Managing Director, estimated the savings at $142,000, which is based on the minimum 2-percent target, in her presentation to the school board Feb. 10.

"Another $142,000 is coming back to the district," NASD Superintendent Joseph Kovalchik said Monday night.

"My job is to save you everything we can on the refunding," said Doyle.

The savings is generated because of lower interest rates.

"We're proposing to replace those old higher rates with today's lower rates," said Doyle.

"The market and interest rates are looking attractive. So, that's in your favor," Doyle said.

"I'm seeing a lot of demand [and] not a lot of supply," said Doyle of the bonds market.

School directors also voted 9-0 Feb. 24, at the recommendation of the administration, to authorize the administration to work with PFM for the issuance of General Obligation Bonds, Series A 2014, in the approximate amount of $29,250,000 to fund part of the new Northampton Area Middle School Project.

It is expected an internet auction will result in a settlement by April 29, when the next deposit for the project into district coffers would be made.

According to Doyle, $16.2 million has been expended on the middle school project. Approximately $13 million would remain in the project after the 2014 bonds issuance.

The $80.7-million middle school construction and secondary campus renovation project in Northampton includes the new Stadium Drive, field house, parking lots and school bus drop-off area and track and field at Al Erdosy Memorial Stadium.

The three-story, 272,000-square-foot middle school, to accommodate 1,500 sixth-, seventh- and eighth-grade students is to open for fall 2015 classes.

Explained Doyle to school directors and administrators in urging the refunding of bonds and issuance of new bonds, "You'll have about three-quarters of your borrowing locked in, so you will have eliminated interest rates rising."

In tax millage, the cost of the construction project has been reduced from 0.183 mills to 0.176 mills. Originally, 2.38 mills was the project's cost in millage.

"So, we continue to chip away at the millage cost," Doyle said. "We've made progress with each step of the plan."

NASD school board president David Gogel said that the 0.176 mills project cost might be lowered further.

"We've been putting extra cash into the payment schedule," Gogel said.

The portion of the 2014-15 budget set aside for the project is 0.37 mills.

"I follow the schedule very closely," NASD Business Administrator Terry Leh said.