North Bergen Board of Education saves Taxpayers thousands of dollars by refinancing a lease-purchase agreeement

NORTH BERGEN, NJ – The North Bergen Board of Education has announced the refinancing of an existing lease-purchase agreement, which will save local taxpayers more than $680,000 over the next seven years.

“The refinancing of this lease-purchase agreement allows us to save North Bergen taxpayers a substantial amount of money over the next seven years,” said Mayor Nicholas Sacco. “These additional funds to the budget will allow the Board of Education to improvement academic opportunities for students as well as school facilities.”

This is the second refinancing of the 1998 agreement, which was first refinanced in 2005 and saved over 3% of the debt for the taxpayers.

“This time the market was much more favorable to the Board of Education,” said Board of Education Business Administrator Steven Somick. “We locked into a net present value savings of $642,198.46 which is 7.948% of the par amount of refunded 2005 COPS. The budgetary savings is $680,838.06 with about $85,000 to $87,000 a year. Between years 2016 and 2023 when the debt is paid off.”

The North Bergen Board of Education remains committed to maintain fiscal responsibility for our taxpayers and to continue enhancing the North Bergen School District.

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