Palmerton Area School District closed on its most recent bond refinancing this week, saving around $400,000 more than was originally anticipated.

By lowering the rate on its 2016 Series bonds, Business Manager Ryan Kish said, the district saved a total of $907,000.

“This is more than the original estimates brought to the board earlier in this process where we anticipated around a half-million dollars in savings,” Kish said. “This most recent refinance will have an immediate effect on our budget process by saving $87,000 this current fiscal year, and $103,000 next year.”

Zach Williard, of the Public Financial Management firm, said the refinancing was accomplished by lowering interest rates and without adding any new debt to the district.

Palmerton had two previous refinancing opportunities, which also saved the district money.

Savings on its 2015 Series A bonds came to $1,216,767 over the life of the bonds, while a 2015 bond refinancing netted around $58,000 in savings.

“Over the last 12 months, we have been able to produce $2.3 million dollars worth of savings, which equates to between $125,000 and $200,000 annually until 2036, all without incurring any additional years or costs,” Kish said.

As part of the refinancing process, Kish was interviewed by the Moody’s Credit Ratings Agency to ascertain a credit rating for the district. As a result of the call, Palmerton will maintain its A1 rating.

“The district has seen no impact from the coronavirus pandemic in terms of its financial position,” Moody’s said in its ratings rationale. “On the other hand, competing cyber charter enrollment has grown notably, though this is expected to temper over the medium term if and when student masking requirements are eliminated.”

Moody’s analysts commented that the district is, “close to a credit upgrade because of its strong financial position, financial management, and ample liquidity, but would not get the upgrade at this time for reasons out of control of the district, such as residential wealth and income.”

“Future development within the district boundaries could spur a future upgrade, but all things considered, the A1 rating is very good for a district our size in a rural area,” Kish said of the rating.