Bond Refinancing to Save Lake Taxpayers over $827,000

Bond Refinancing to Save Lake Taxpayers over $827,000

 

The Lake Local Board of Education is pleased to announce the completion of a bond refinancing that will save the Lake taxpayers an estimated $827,500. The original bonds, sold in 2001 for the construction of the middle school, were scheduled to be fully amortized in December 2025. These original bonds, however, were refinanced in 2007 that netted a total interest cost savings of $1,034,091.

“We’ve now been able to take advantage of this second refinancing, that when added to first, provided a savings of $1,861,591 in total interest costs and shorten the life of the obligation by nearly 2 years.”, according to Treasurer Jeff Carpenter.

Board President Tim Krugh said, “The bond refinancing neither helps, nor hurts, the finances of the school district in any way. All the savings goes back to the taxpayers.” “This”, explains Board member John Ervin, “underscores the Board’s commitment to the community….to be good stewards of taxpayers’ dollars by seeking cost savings whenever and wherever possible.”

2001 Original Bonds – Sold with interest rates ranges of 3.5% to 5.3%

2007 Refinanced Bonds – All sold with 4% interest rates

2016 Refinanced bonds – Average interest rate of 1.8%

Jeff Carpenter, Treasurer

9/15/2016