Dear Eatontown Public Schools Community Member:
The Eatontown Board of Education (the “Board”) joined with 20 local governments in the County to permanently finance previously unfunded ordinances through the Monmouth County Improvement Authority (“MCIA”). Ten municipalities, two sewerage authorities, and one fire district will use the funds to refinance outstanding bond anticipation notes and to finance other general improvements. Eight municipalities and one board of education will use funds to refinance outstanding refund Monmouth County Improvement Authority (“MCIA”) Governmental Pooled Loan Revenue Bonds, Series 2013A, 2013B, and 2014 issues for savings.
The Board achieved an attractive 2.66% true interest cost for its 8-year bond issue on the refunding. This generated present value savings of 6.95% of the bonds refunded and budgetary debt service savings of $825,237.50.
Net annual savings realized by the Board attributed to the Aaa/AAA/AAA credit rating provided by the County were an average of $123,673.85. Without the guaranty of the County, the Board would not have been able to achieve this high level of savings.
The Bonds were sold to a wide group of 31 investors including bond funds, SMAs, bank trust departments, money managers, insurance companies, and smaller tier 2 and tier 3 investors.
For the Eatontown taxpayers, the reduction projected for the next 8 years will not need to be funded through the local tax levy. Although the Board of Education is happy to save the local taxpayers money, it should be noted that this savings is not realized in the operating budget, but rather in the debt-service side of the budget. Meaning, the district will not have the additional funds available in its operating budget next year.
Thank you for your support of our schools.
Sincerely,
Scott T. McCue
Superintendent of Schools
Lori Youngclaus
Business Administrator