New Albany-Plain Local School District recently completed a bond refinancing, resulting in a savings of $1.3 million. The district is providing additional details to this transaction that were not captured in a recent Columbus Dispatch article.
In 2007, the New Albany-Plain Local Board of Education and district administrators decided to refinance bond debt, when interest rates were much lower than the original 2000 and 2002 bonds interest rates. The 2007 transaction resulted in a $1.17 million savings for the district.
This March, the district completed another refinancing that generated additional net savings of $142,181. This recent transaction has resulted in a more stable bond situation and achieved net savings — the stated goal.
Here are key facts regarding the bond refinance:
- Taxpayer money was not at risk. There were safeguards built into the 2007 transaction that protected the district from losing money.
- The district realized $1.3 million in net savings over the two related transactions in 2007 and 2012. This figure includes all fees, costs and the price of the final termination of the bonds.
- These transactions are appropriate and legal for public school districts under Ohio Revised Code, Chapter 133. They have been audited by state auditors and found to be in compliance with the rules and regulations. The district enjoys an eight-year record of clean, successful audits.
“Your confidence in our action is important to us,” said Mark Ryan, a board member and liaison to the Financial Review and Reporting Committee (FRRC). “Residents who have further questions regarding this bond refinancing should contact a member of the board, the treasurer, or the superintendent for complete, accurate information. Together with FRRC, we work diligently to project revenue and plan expenses for the coming years to ensure a sound fiscal plan for the district’s finances.”