Refinancing Construction Bonds to Save Taxpayers $831K
On Nov. 7, 2017, Groveport Madison Schools Treasurer John Walsh along with representatives of Ross, Sinclaire & Associates, LLC, completed the refinancing of a portion of the District’s 2014 School Facilities Construction and Improvement Bonds. The $8,225,708 refinancing will save taxpayers approximately $831,815 in gross debt service over the life of the issue by reducing interest costs from 5.00 percent to approximately 3.69 percent.
“We’ve been working very hard to implement strong financial controls and to manage the resources we’ve been provided as efficiently and effectively as possible,” said Walsh. “As a result, Moody’s credit rating service upgraded the District’s credit rating from A3 to A2. When combined with an improving economy and a strong bond market, the conditions were perfect for us to pursue the refinancing.”
Superintendent Bruce Hoover said that an upgrade in the District’s credit rating should indicate to the community that the school district is moving in a positive direction. “Credit rating services take their job very seriously and they conducted a thorough review of the District’s finances and its operations,” said Hoover. “When an organization’s credit rating is upgraded, it reflects on the level of confidence the rating service has in the financial outlook and the management of the operation. In our case, this results in the District being able to refinance bond debt at a lower interest rate, which ultimately saves our taxpayers money. It should be seen as great news for the community.”
Posted: Monday, November 13, 2017