Jim Thorpe Area School District is exploring a potential bond-refinancing plan that could result in up to $100,000 in savings for the district.

The school district may have the opportunity to refinance its 2015 A Bonds starting Dec. 15, 90 days before the bonds’ call date on March 15.

The plan, presented by FSL Public Finance, highlights a scenario where Jim Thorpe could issue approximately $6.28 million in 2024 bonds to refund the outstanding $6.26 million 2015 A Bonds. The current interest rate environment could lead to lower borrowing costs, with a potential true interest cost of 3.174%, lower than the original 5% rate of the refunded bonds.

Business Manager Brian Off recommended the district consider a parameters resolution to move forward.

“If the interest rate is between X and Y in December, they’ll initiate procedures to refinance the bond,” Off told the board.

According to a document given to the board last week, if market conditions align, the district could realize net present value savings of $62,582, representing 1% of the refunded bond amount. This refinancing could also result in total cash flow savings of $59,744 over the next few years, averaging about $19,915 annually. A variety of interest rate scenarios were considered in the document, and under the most optimistic conditions, the district could save up to $122,296 in net present value savings.

A parameters resolution, Off said, would authorize the refunding if certain savings thresholds, such as $85,000 to $100,000 in net savings, are met.

Additionally, Off recommended rolling over a certificate of deposit worth $1,020,000, which is set to mature soon.

“I’m recommending we roll it to a nine-month CD at 4.5%,” he advised, potentially increasing the district’s funds over the short term.