SPARTA, NJ- The Sparta Board of Education announced having saved the Sparta taxpayers more than $3 million at the August board of education meeting last week. Sparta Board of Education President Kim Bragg said on August 6, the school district “entered the bond market to refinance the callable [bond] maturities of its 2015 Refunding School bonds.”
This successful bond refunding resulted in a total debt service savings of $3,292,360. She said this equates to “net present value savings of $2,888,900 or 8.443% of the bonds being refunded, far exceeding the amount originally anticipated.”
Bragg broke the numbers down further. The Sparta taxpayers will realize approximately $219,000 annually for the next 15 years in debt service savings.
This is not the first time the board of education has refunded the bonds since the initial funding in 2006. At that time voters supported the referendum authorizing a $72 million bonding to build the Sparta High School.
In 2015 the Sparta Board of Education had refunded the original 2006 series. That refunding realized savings of $3,393,360.
The combination of the refundings has realized more than $10,275,000 in savings without extending the life of the initial bond series, Bragg said.