Bond Refinancing Yields Taxpayer Savings

Bond Refinancing Yields Taxpayer Savings
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Lakota’s recent efforts to refinance its bonds will save local taxpayers a total of $900,000.
 
“Since we saw the benefit of refinancing our bonds a few years ago and made this a recurring process, the overall savings is up to $6.9 million over the last few years,” said Lakota Treasurer Jenni Logan.

“When you’re dealing with a $149.5 million annual operating budget, it might not seem like much,” Logan continued, “But every savings we can manage on something like debt service payments gives us that much more latitude to put our resources against opportunities for students.”

The bonds originated in January 2006 after the community voted to approve a bond levy. Bonds allow school districts to borrow funds, at a fixed interest rate, to help pay for immediate, high-cost expenses, without depleting its cash reserve. These have been used primarily to finance construction of new schools.

Local tax collections tied to the bond levy cover Lakota’s annual debt service payments on those bonds. Now that the district’s payments are lower, taxpayers will see a correlating difference in their own local tax payments.

“We are proud of the fact that we are operating on balanced budget and have been for quite some time now,” Logan said. “These kinds of savings will help us extend that trend.”

Lakota Superintendent Dr. Karen Mantia added, “This move is no different than what we do to keep costs low in our own homes. I appreciate Ms. Logan making this type of maintenance to our debt a priority.”