Tamaqua Area School District could save $225,0000 through the refinancing of bonds.

On an 8-0 vote, the school board on Tuesday authorized business manager Connie Ligenza to continue to prepare documents and a resolution to refinance the 2011 note and a portion of the 2012 A bonds for the purpose of debt service savings. Director Aaron Frantz was absent.

The 2011 note was for an extensive energy savings project, while the 2012 A bond issue was for the refinancing of debt service that was outstanding for the middle school.

Director Daniel Schoener questioned whether the board should wait until the beginning of the year, rather than take action now.

However, Christopher Hoffert, director at Stifel Public Finance, said that if the rates stay the same and they did this in March, the savings would drop.

“We’re going to get you the best rate we possibly can based on the market rate,” Hoffert said.

Based on figures it received last month, the district thought it would eventually save about $376,000.

Ligenza said that while the savings would be about $150,000 less than the board had expected, “It’s a significant amount of money.”

She said that while a parameters resolution had been discussed, the board will not use it.

Ligenza said the district is working to size the bonds to realize the majority of savings in the 2017-18 school year.

She said if rates cooperate, the district will price and sell the bonds on Nov. 14, and take action at a special meeting that evening.

“Interest rates have risen in the municipal bond market since our last meeting, resulting in $236,481 in cash flow savings,” Ligenza said. “Our next step will be to proceed with the rating process as long as we meet the minimum threshold of $225,000.”