Hamburg area school directors are considering refinancing a 2011 bond which could result in the district realizing $1.96 million in net savings by 2016, according to the district’s financial advisor.
Scott Kramer of RBC Capital Markets told school directors on Oct. 27 that the district currently owns $36 million in net debt service and recommended that the district refinance in three $10 million increments.
The first piece would occur before the end of 2014, the second in January or February and the final piece in 2016, according to Kramer.
“The first piece would provide $517,000 in savings or 6.23 percent which is a very good level of savings,” Kramer said. “The second piece would bring in $652,000 for net savings of over $1 million (by February).”
School directors will vote on the recommendation on Nov. 10.
“The district will be debt-free, in terms of not having a mortgage, in less than 20 years,” Superintendent Steven Keifer said.
In other news, school directors agreed to increase the pay for substitute nurses to $110 per day from $95.
“We’ve had trouble finding substitute nurses and this increase will put us in the middle to slightly above in the county,” Business Manager Michele Zimmerman said.
The rate for substitute teachers in the district is $95 per day, according to Zimmerman.
In other news, school directors accepted an offer of two $1,000 scholarships by the Kutztown Optimist Club.
To be eligible Hamburg Area seniors must be involved in an activity outside of school, such as a church or community activity, and have been accepted to Kutztown University.
The nominees will be chosen by school administrators.
In other news, school directors approved a fund transfer in the amount of $161,891 from the sale of the former Upper Bern Elementary School from the general fund to the capital reserve fund.
The building was sold to the Shalom Bible Fellowship, according to Zimmerman.
The next meeting of school directors is on Monday, Nov. 10 at 6:30 p.m. in the James A. Gilmartin Community Room.