Assistant Superintendent Craig McCarthy said this is a significant savings for the district. “It’s like refinancing a house. You want to take advantage of lower interest rates when the time is right and when it’s available.”
Of the $33.83 million outstanding in the 2014 bond, McCarthy explained the district is able to refinance about $14.2 million. The district will see the savings in the interest paid on the outstanding portion of the bonds. “We want to get below a 3 percent interest rate and right now that’s very achievable,” said McCarthy.
“This is a very good thing for the district and the community. While it’s an estimate, it’s like our total bill has just been reduced by $2.1 million,” said McCarthy. The 2014 bonds are anticipated to be paid off by at least 2032.
Property values in the community continue to increase and taxes are determined by that value. Therefore, McCarthy explained, the estimated $2.1 million in savings from the refinancing won’t necessarily mean lower taxes. “However, by taking advantage of this refinancing opportunity we may slow the rate of property tax increases.”
McCarthy explained there are only a couple of times available during the life of bond for refinancing. “We have to take advantage of these opportunities as we continue our promise to be good stewards of our funds,” said McCarthy.
The board of education has approved moving forward with this process and will finalize the refinancing efforts likely in late spring.