BVA may restructure energy lease contract
By CHRISTINE HAINES
chaines@yourmvi.com
Historically low interest rates could mean a $250,000 savings for the Belle Vernon Area School District.
During a work session this week, financial advisor Chris Bamber of PFM Advisors told the board that restructuring the $6.7 million energy lease contract through a bond issue could result in the savings over the life of the contract.
The energy lease contract is known as a Tax Exempt Lease Program (TELP) and was issued by Sterling Bank in April 2016 to fund the 15-year Opterra Energy Services guaranteed energy performance contract.
The savings would be spread over the life of the contract with no extension past the original maturity date.
Crystal Clark, the district’s business manager, also reached out to Sterling Bank as well as Mills Capital to request proposals on the savings to refinance the TELP at lower interest rates.
“After analyzing the district’s options, the bond issuance proves to be favorable fiscally, and the savings yield is what influenced the recommendation to the board,” Clark said.
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