Oakwood taxpayers will see a savings of approximately $1,180,000 thanks to Oakwood school district refinancing more than $7 million in outstanding bonds, according to a press release by the district.
The savings will be reflected in lower tax rates to pay off the debt issue, but will not provide any additional money to the schools.
The bonds, originally issued in 2003, were issued with an average interest rate of 4.125%. The refunding bonds were sold April 11 with varying rates, averaging 2.87%. The refunded bonds will mature over the same 13-year time period.
“This refinancing was very beneficial to the taxpayers of Oakwood Schools. We were able to take advantage of a lower interest rate market than when the bonds were originally sold, which at that time was at historic lows. This refinancing helps the taxpayers, but does not create any additional money for the school district,” Oakwood Schools Treasurer Kevin Philo said in the release.
Oakwood school officials have been working on the project for the past four months. In April 2007 and March 2012, the district refinanced $15.2 million worth of bonds, saving taxpayers approximately $1.48 million.
The bonds were originally issued in 2003 as the result of the bond levy passage in November 2002, which allowed the additions to Smith and Harman Elementary schools, Oakwood High School and Junior High, and major renovations and updates to all district buildings.