Friday, March 9th, 2012
The Morris County Improvement Authority, through the use of the county’s Triple-A bond rating, this week saved the Morris Hills Regional School District nearly $1.7 million.
The savings was realized thanks to the district’s refinancing of a 2004 bond issuance.
This is the second time financing through the Morris County Improvement Authority has produced a significant savings for the district, which is comprised of Denville, Rockaway Borough, Rockaway Township and Wharton.
The initial financing by the Morris County Improvement Authority in March 2004 enabled the school district to finance renovations and additions to Morris Hills and Morris Knolls High schools and save $555,000 in the process by availing itself of Morris County’s Triple-A bond rating.
This week, the school district again used the Improvement Authority to facilitate the refinancing transaction.
The Improvement Authority on Wednesday sold $28.2 million in bonds, resulting in a gross savings to the district of $1,673,000 over an 18-year period.
The school district utilized the Morris County Improvement Authority since, under state law, these authorities have more flexibility in financing and issuing bonds.
By using the Improvement Authority and capitalizing on the county’s Triple-A bond rating, an entity is able to borrow at a lower interest rate, saving money for its taxpayers.
“This is a prime example of why the freeholders created the Morris County Improvement Authority,” said Freeholder Director Bill Chegwidden. “By using this agency to finance projects and refinance bonds, local officials may be able to spend fewer dollars and reduce the tax burden on their residents while meeting the needs of their communities.”
Freeholder Douglas Cabana, the board’s deputy director, said the latest transaction also demonstrates the importance of the county’s Triple-A bond rating.
“There is no doubt that our Triple-A rating, which is the highest rating a government agency can attain, made a big difference in the low interest rate for this refinancing,” Cabana said.
More information about the Morris County Improvement Authority may be obtained by calling (973) 285-6020 or by visiting the MCIA website, www.MorrisCountyNJ.gov/improvement.