Palmerton Area School District closed on the bond financing for its ongoing high school and administration building construction project June 9, securing an interest rate officials say will save the district roughly $575,000 over estimates.

The savings came out of a credit review with Moody’s that went better than expected, according to Ryan Kish, the district’s assistant superintendent for finance and facilities.

“I had a meeting with Moody’s credit rating company that went extremely well,” Kish told the board Tuesday.

Moody’s review found the district has “a healthy financial position, great stability, and strong financial management,” he said.

That assessment translated directly into savings for taxpayers.

“As a result of this, we were able to secure a more favorable interest rate of 3.79%, which will save us $575,000 in interest over the life of the bond over our initial projections,” Kish said.

The new debt is projected to add $305,991 to the 2026-27 budget and matures in 2045.

The financing covers the district’s roughly $14.9 million project to build a secured entrance, additional classroom space and a new district administration building at the high school — a project for which the board approved more than $12.9 million in construction contracts in April. Crews began work at the site earlier this month after clearing a series of pre-construction milestones.

The board awarded the project’s prime construction contracts on April 22. E.R. Stuebner Inc. of Reading received the general construction contract at $8,931,000. Billitier Electric Inc. of Allentown won the electrical contract at $1,764,618, while JBM Mechanical Inc. of Nazareth was awarded both the mechanical contract, at $1,560,000, and the plumbing contract, at $657,000.

The bond itself was authorized at up to $18 million, more than the project actually costs, when the board passed a financing resolution without opposition on May 20. Kish explained that Pennsylvania’s Department of Community and Economic Development requires districts to set a borrowing ceiling above the immediate project cost within such resolutions, giving the district’s underwriters room to maneuver during the bond sale.

The district expects both projects to be complete in time for the 2027-28 school year.