WPCNR SCHOOL DAYS. By John F. Bailey. October 2, 2008: The White Plains City School District is holding back the $24 Million in municipal bonds it has plans to float to complete its district-wide renovation of the rest of its elementary, Middle and High Schools, and its anticipated certiorari tax refund payments, Assistant Superintendent for Business Fred Seiler advised WPCNR today.

He said the district has to underwrite the bonds between January and June 2009 to keep the project moving and meet expected certiorari obligations.. Previously the $50 Million the district borrowed for the capital project was costing the district an average 4% interest, ranging depending upon maturity from 3-3/4% to 4-1/4%. He said with New York City having to pay interest of 5-3/4% recently to attract buyers for  New York City bonds that he hoped the rates would come down from the current highs. He said the markets were too unstable now to float an issue. He said the district would keep evaluating the situation with its underwriter.

Should the district be forced to pay 6% interest, for example, this higher rate would increase school bond payments above the $10.3 Million in debt service expected in 2010-11. Typically, Seiler said they might have an interest payment in June, and no principal payment on the new $24 Million issue until January 2010. He said he could speculate at this time how much higher the debt service would run should the district interest rate be driven up to today’s 6% levels.