During last Thursday evening’s Big Walnut Board of Education meeting, district Treasurer Terri Day announced that Big Walnut successfully refinanced a portion of its outstanding debt for a cash-flow savings of $570,180.
“These savings were obtained by taking advantage of lower interest rates,” Day said. “Big Walnut schools has also taken advantage of lower interest rates on other portions of its debt in 2012 and as recently as November 2014.”
Day said the new bonds were sold at an interest cost of 3.7 percent over a 22-year repayment period, replacing a 5 percent interest rate.
The bonds being refinanced — in the amount of $5,990,000 — were issued in 2004 and 2009.
“The combined savings of the 2014 and 2015 refinancing totals $1,816,280,” Day said. “Those savings will not go directly to the school district; instead, lower tax collections will be required for the school’s debt payments each year.”
Day said school district property owners would save 7.4 percent in projected tax collections over the life of the bonds because of the refinancing.
Day said the school district was assisted in the financing by Fifth Third Securities Inc. and Bricker & Eckler LLP.
In other business, Day said she will present a closer look at the state latest biennial budget and its impact on the district during the September board meeting.
Reporter Lenny C. Lepola can be reached at 614-266-6093