The Miami Trace Local School District Board of Education recently took advantage of historically low borrowing rates by refinancing a portion of its outstanding bonds that originally financed and refinanced new buildings and improvements.
According to Miami Trace Treasurer Debbie Black, the district was able to refinance $11,070,000 of its existing Series 2013 and 2014 bonds. Interest rates were reduced from approximately 3 percent on the previous bonds to 1.7 percent for the new bonds. Interest savings over the remaining 14-year loan are over $1,236,150 and savings will reduce bond issue property taxes over time.
“This isn’t the first time the district has worked to reduce taxes for its constituents,” Black said on Tuesday. “The district has had three bond issues for each of the buildings — elementary (2005), middle (2008) and high (2015) schools. Prior to this recent refunding, the district had refinanced callable bonds for the elementary and middle schools in 2013, 2014 and 2015. The total savings to the taxpayers for those refinancings was $2,281,711. If you add that to the $1,236,150 recent savings, the total savings for taxpayers with bond refundings has been $3,517,861.”
For this type of bond loan — where refinancing opportunities are limited by law — the transaction is considered to be, “very successful,” Black said.
“It is important to note that none of the refinanced savings goes to the district, it all automatically goes to the taxpayers via reduced taxes over the term of the bonds,” Black said. “For all of the refundings, the district utilizes the services of a financial advisor, legal counsel and underwriter. For this recent issue, the district utilized BradleyPayne Advisors, Dinsmore & Shohl LLP Attorneys and Hilltop Securities. The guidance and counsel of the representatives of these organizations is very valuable to a successful transaction.”
The district’s board of education, treasurer Black and superintendent David Lewis said they strive to take advantage of every opportunity to reduce taxes for the district’s taxpayers. At Monday’s board meeting — in fact — the board passed three more resolutions for additional advanced bond refundings for the remaining — previously refunded — callable bonds for the middle school and for the original high school bonds. Any or all of the qualifying bonds may be refinanced, but Black said it just depends on whether or not a savings can be realized.
“Being fiscally responsible to the taxpayers is always a priority to the board of education,” Black said.
The information in this article was provided by Miami Trace Local Schools Treasurer Debbie Black.