Taxpayers Gain On This Bond Issue

Posted: September 03, 1992

The Marple Newtown school board has approved an almost-$8 million bond issue that school officials said would refinance two previous bond issues at a lower interest rate and provide additional money for capital improvements.

Dolphin & Bradbury Inc., a Philadelphia investment firm, arranged a $7.94 million bond issue at an average interest rate of 4.97 percent for the district. The firm also underwrote the district's 1986 and 1989 bond issues,

from which the district carried about $6.5 million in debt at 6.7 percent.

"We were able to take advantage of a slight improvement in the market the other day," said Michael A. Wolf, vice president of Dolphin & Bradbury, at the board's regular meeting last Thursday. He added that the new bond issue extended the term of the bonded debt by three years, to 2002.

Wolf said Marple Newtown was saving "on the order of $90,000 to $100,000 just by re-funding at a lower rate."

"It should result in a real savings to the taxpayer and allow us to get some things done we need to get done," said board member Jonathan V. Freeze.

The additional $1.5 million will be used for capital improvements, including the replacement of the fire alarm systems in Paxon Hollow Middle School and the senior high school.

The board also heard from two students interested in placing student representatives on the school board.

Senior Keith Heinerichs, president of the student council, and junior Pam Brennan, a student council member, asked the board to consider allowing two students, a junior and a senior, to sit on the board in a non-voting capacity.

"A lot of things happen that the school board doesn't know about," Heinerichs said, "and the school board makes a lot of decisions the students don't know about."

The seven board members present said they supported the idea and suggested that the students present it to the entire board this month.

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