Glen Rock Schools to Save $1.3 Million Through Bond Refinancing

At its September 30, 2025 meeting, the Glen Rock Board of Education approved a resolution to refinance a portion of its outstanding school bonds, a move projected to save the district approximately $1.3 million over the next eight years.

The bonds in question are the 2016 series refunding bonds, which had previously refinanced the 2008 referendum bonds. That 2016 transaction saved the district $4.1 million, and this second refinancing is expected to bring in another round of significant savings.

Business Administrator and Board Secretary James Canellas explained to the Board, “The district has an opportunity to refinance some of its debt service because we can achieve a lower rate in the outer years of those bonds, which are within the next eight years.” He emphasized that the district is “obligated to refinance any time it can save more than 3 percent net present value on its bonds,” and noted that “all the costs associated with the refinance are also included in that 3 percent NPV so that it's all in.”

According to Canellas, market conditions are favorable, particularly because “we are now, with eight years left, we're in the short-term rate market, which is showing some signs of easement on the rates. And so we're going to try to capitalize on that opportunity and save some money in our debt service.”

The district has already prepared issuance documents and will move ahead with the bond rating process in the coming weeks. The bond sale is scheduled for November 19, with the transaction expected to close on December 9. The refinanced bonds will be redeemed on March 1, 2026, timed to ensure continued tax-exempt status for investors.

There is no extension of the repayment period. “There will be no increase in term on these bonds. They will still mature in 2034,” Canellas said.

He also addressed a contingency plan in the event that the market does not cooperate. “If we go out to auction with our bonds and we do not save the 3 percent because for whatever reason there's some major catastrophe the morning of the auction, the only fees that we are on the hook for are that of the rating agencies, S&P, which we'll meet with, who will rate our bonds based upon our financials.”

The refinancing satisfies both a state mandate and a strategic opportunity to reduce the district’s debt service burden without changing the overall term of repayment. Administrators will monitor market conditions closely leading up to the November sale date.

Superintendent Brett Charleston was not present at the meeting.