School Project Financed by Improvement Authority Dedicated

Two new science wings have been dedicated at Morris Knolls High School in Denville and Morris Hills High School in Rockaway.

The two-story additions to both schools were part of a $56 million school construction project that was approved by school district voters in 2003.

The bonds that funded the project were financed by the Morris County Improvement Authority.

The Improvement Authority in 2005 was able to obtain an interest rate of 3.9 percent for the bonds, as opposed to the 4.5 percent rate the school district had estimated, thus saving the district $2.7 million over the life of the loan.

Since the MCIA was established in 2002 by the Morris County Freeholders, it has realized millions of dollars in tax savings for the entities that have used the authority to finance critical projects.

MCIA Plans October Pooled Bond & Note Transaction

The Morris County Improvement Authority is soliciting indications of interest from municipalities and school districts that may be interested in participating in a pooled bond and note financing to be completed in October.

In order to develop the program structure, the MCIA is collecting financial information from the towns and school districts on the type of debt they would like to finance through the program.

The information will then be used by the Improvement Authority to construct an initial financial model, which when completed, will be forwarded to the towns and school districts for their review and comment.

Morris County Freeholder John Inglesino, freeholder liaison to the MCIA, said municipalities and school districts should give serious consideration to participating in the pooled bond and note financing.

“Participants will benefit from Triple-A tax-exempt rates on financing because of the County of Morris’ guarantee,” Inglesino said. “In addition, the current interest rate environment for long-term debt is very attractive because of a flat yield curve.”

He said the improvement authority’s financial advisors at the Acacia Financial Group, Inc. report the one year interest rate today is 3.58 percent, compared to 3.62 percent for five year maturities, 3.85 percent for 10 year maturities, 4.02 percent for 15 year maturities and 4.10 percent for 20 year maturities.

Inglesino said economies of scale will also be achieved because the costs of issuance will be shared.

Towns and school districts interested in participating in the pooled bond and note financing should complete and submit an application, which may be found on the MCIA Web site, www.morriscountyimprovementauthority.org, or contact the MCIA at 973-285-6020 for additional information.