Count Palmerton Area School District among the government entities looking to take advantage of low interest rates with a potential upcoming debt refinancing.

The district is set to take up a motion at tonight’s board meeting to work with PFM Financial Advisors LLC as independent financial adviser; Eckert Seamans Cherin & Mellott LLC as bond counsel; Boenning & Scattergood as underwriter; and its local solicitor in conjunction with the potential refinancing of some or all of its Series of 2015 Note and Series A of 2015 Bonds.

“The current market’s interest rates give us an opportunity in the upcoming weeks to refinance existing bonds from 2015,” Zach Williard of PFM told the board earlier this month. “The market has settled since the initial COVID-19 disjointedness and interest rates are all-time lows right now.”

Palmerton’s existing loans call for around $2.5 million each year in debt service payments. The 2015 bonds become callable, however, in February 2021 and the district can close a transaction within 90 days of that date.

Williard estimated a refinancing could save Palmerton just over $100,000 in its 2020-21 budget and almost $80,000 the following year, without kicking the payoff date down the road.

“This is just going to be interest savings,” he said. “We wouldn’t be stretching out the debt.”

The resolution on Tuesday’s board agenda wouldn’t tie the district to anything, and should interest rates take a higher turn, the plan could still be scrapped with nothing lost.

“I do recommend we move pretty quickly,” Williard said. “We estimated about $640,000 in savings over the life of the bonds, and that is honestly conservative. If we did it right now, I think we could get to $1 million. A lot of districts, boroughs and townships are refinancing right now because the market is very ripe.”

Williard said Tuesday’s motion, if approved, would set the district up to lock in an interest rate in October and settle refinancing in November. The sooner, the better, according to Palmerton Business Manager Ryan Kish.

“That $100,000 could go a long way in the 2020-21 budget,” Kish said.