"I don't like some comments I've read in the paper," Kennedy said during the school directors roundtable session. "I've never gambled with the taxpayer's money. I've never gambled with a penny of the taxpayer's money in this school district."
Kennedy was referring to a $32 million interest rate swap that is netting the school district semi-annual payments between $8,000 and $10,000, according to Business Manager John Vignone. In this swap, the Parkland School District is counting on the London Interbank Offering Rate, commonly referred to as 1-month LIBOR, performing better than another rate pegged to the swap.
Vignone said last month that if swap continued to move in a positive direction for the district, it will limit exposure and even turn a profit of about $100,000. Kennedy said the school board "did its due diligence on the swap and made intelligent decisions that paid off for Parkland." Earlier this year, the Pennsylvania Auditor General scolded the Parkland School District in a report for using interest rate swaps, calling them "risky financial instruments." Kennedy did not divulge where he read the negative comments concerning interest rate swaps, but did take a swipe at an unnamed school district, stating "they're now using our methods."