Elanco Trying To Save $400,000 ; School District Wants To Refinance $12.5 Million In Bonds From 2010

BY JUSTIN STOLTZFUS

Correspondent

Eastern Lancaster County School District is hoping to save up to $400,000 in interest by refinancing bonds of $12.5 million.

At its meeting April 21, the school board agreed to advertise a plan to refinance bonds from 2010 after hearing a presentation from Lauren Eby of RBC Capital Markets and Rhonda Lord of Kegel, Kelin, Almy & Lord.

Eby said the current maturity date for the bonds is February 2023, which would not change.

Eby said a refinancing would allow the school district to offer banks options that include certain tax credits, where banks may in turn accept even lower interest rates.

Eby projected the move could save the district around $350,000 with average market conditions, and up to $400,000 in optimal circumstances.

Also, Eby said, the district will not need bond insurance, since it has AA rating from Standard & Poors.

"You should receive some very aggressive bids." Eby said.

Keith Ramsey, the district's chief of finance and operations, pointed out that of the projected gross savings, the state will take around 30 percent.

In other business at the meeting, the school board:

nHeard from Bonita Stone and Terry Mohler about plans to propose a school-sanctioned swim team.

Mohler, an Elanco graduate and member of the New Holland Borough Council, is also president of the New Holland Dolphins summer swim club. Mohler presented the board with information on the national appeal of swimming as a school sport.

Mohler said the group will present a formal budget plan to the board and to administrators next month.

nGot an update from board member Melissa Readman about programs and enrollment at the Lancaster County Career & Technology Center.

Readman is a member of the LCCTC's Joint Operating Committee. She said that, overall, CTC enrollment is keeping pace with last year's numbers.

"The programs are growing and expanding," Readman said.

nIn a legislative report, board member Tom Wentzel said the district should look for charter school reform to move forward after legislators decide on a state budget.

Wentzel also mentioned state Senate bill SB76, which would move some school funding from property taxes to an assortment of other funding vehicles.

School board president Glen Yoder said the bill faces a rocky road in both the Senate and the House.

nSuperintendent Robert Hollister congratulated district students who participated in a number of recent science and extracurricular competitions.

One was a Science Olympiad at Millersville University, at which, Hollister said, 15 Elanco students competed, and four won awards.

Hollister said a number of district students also placed well in a Technology Student Association state competition, at which one student won a scholarship from Clark Associates.

Hollister also congratulated Elanco's New Holland Elementary chess team, saying two coaches "picked up the ball" after the former director resigned this year.

Hollister said fifth- and sixth-grade students from the school made up two teams that placed first and second in a recent competition involving dozens of teams.

"It has become a dynasty," Hollister said. "It's exciting to watch."