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Lake schools: 2nd bond refinancing saves $827,500
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The Press Newspaper

Toledo, Ohio & Lake Erie

The Press Newspaper

The Press Newspaper

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With a recent refinancing of bonds issued for the construction of the middle school, the Lake School District has saved more than $1.86 million in interest costs, according to the district administration.

The Lake board announced last week the completion of a second bond refinancing that will save an estimated $827,500.

The original bonds, sold in 2001, were scheduled to be fully paid off in December 2025, said Jeff Carpenter, district treasurer. However, they were refinanced in 2007 that netted an interest cost savings of $1.03 million.

“We’ve now been able to take advantage of this second refinancing, that, when added to the first, provides a savings of $1,861,591 in total interest costs and shorten the life of the obligation by nearly two years,” Carpenter said.

Interest rates have fallen since 2001, prompting the decision to refinance:

• 2001 original bonds – Sold with interest rates ranges of 3.5-5.3 percent

• 2007 refinanced bonds – All sold with 4 percent interest rates

• 2016 refinanced bonds – Average interest rate of 1.8 percent

Lake school board president Tim Krugh said, “The bond refinancing neither helps, nor hurts, the finances of the school district in any way. All the savings goes back to the taxpayers.”

The savings from the most recent refinancing even surpassed estimates Carpenter compiled in March when he projected the district would save about $705,000 in interest charges.

By this summer he informed the board the savings would be even higher.

This year, total remaining debt for the construction of the school was about $7.4 million. In 2001, voters approved the levy that generated about $14.8 million to fund construction.

“This underscores the board’s commitment to the community, to be good stewards of taxpayers’ dollars by seeking cost savings whenever and wherever possible,” said John Ervin, a member of the school board.

 

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