Sylvania school-bond refinancing yields saving
9/21/2011The Sylvania Board of Education received some good news at its meeting last week.
Laura Sauber, treasurer/chief financial officer, reported that the refinancing of $9.5 million of construction bonds would save the school system almost $1.5 million over a 12-year period.
"We took advantage of the lower interest rates, much like a homeowner who refinances her mortgage," she told the board.
"The refinancing of this debt will save the district $1,450,584 over the next 12 years."
The original bonds had an average interest rate of about 4.8 percent.
The new bonds, proceeds of which were used to retire that debt, have an average rate of 2.34 percent.
Savings from this refunding process will not add to the district's operating budget.