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Refunding of Bonds Expected to Save District $2.2M

Savings will translate to about $8 savings a year for the average household.

The Board of Education is scheduled to vote on refunding and refinancing $28.4 million in bonds at a meeting on Thursday.

The refunding will lower the district’s annual debt service payment for the average household by $8, said district Business Administrator Juanita Petty.

The remaining $28.4 million is what remain of about $45.9 million in bonds that were issued in 2003 to finance the construction of the new Anthony Wayne Middle School and other projects in the district.

The move will save the district about $200,000 annually, or about $2.2 million when adjusted for inflation, over the course of the repayment life of the bonds. The bonds are scheduled to mature in 2023.

The debt service is automatically figured into the school portion of each household’s annual tax bill. The average household is valued at $230,000.

Board President Donald Pavlak Jr. could not be reached for comment.

— Have a question or news tip? Contact editor Daniel Hubbard at Daniel.Hubbard@patch.com or find us on Facebook and Twitter. For news straight to your inbox, sign up for our daily newsletter.

Pad September 20, 2012 at 09:27 AM
Lets see if the taxpayer gets any relief from the burdening school budget. My guess is whatever they save, they will spend somewhere else and even more. The BOE has to understand that the taxpayers are suffering in this town. People are being forced out of thier homes due to taxes here. The taxpayers aren't an endless source of money for thier never ending spending. Wise up BOE your killing the goose that laid the golden egg.
Jacqueline Pisatowski September 20, 2012 at 12:31 PM
When we refinance our homes we pay points, title insurance, bank fees, attorney fees, bank fees... What is the cost of refinancing this School Board debt? Sounds like a nice way to continue feeding their friends work!!! Is the maturity date of this new debt the same as the old debt? What a lot of people forget is that a new lower rate 30 year mortgage requires the barrower to continue to pay for the loan for many years after the original loan would have been paid off. Hopefully the public will consider what this Board of Education has done before they jump to re-elect the incumbents.
Chicken Little September 20, 2012 at 04:11 PM
Jacqueline: When you have a question about something like this, do what I do; call the board office and ask. The BA (Juanita Petty) has answered my questions in the past. This is good news. Don't make it into bad news. (Unless there really is something bad about this).
fboy1932 September 21, 2012 at 01:50 AM
I concur with Chicken Little. Ive called her numerous times and has always returned my calls and was courteous. Nice lady.

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