The Oxford Board of Education voted unanimously last Tuesday to approve the sale and refinancing of the district’s 2006 refunding bonds, which will save taxpayers $2.643 million over the next 25 years.
Superintendent Virginia Brennan-Kyro said the savings include ‘an anticipated reduction in interest expense? related to borrowing from the School Revolving Loan Fund.
According to Tim Loock, Executive Director for Business and Finance for Oxford Schools, the School Revolving Loan Fund is additional funds the state has available for school districts who levy a minimum of seven mills to borrow for their debt payments.
‘The state loans money at a very low interest rate for those who qualify and we use that to help make our debt payments every year instead of increasing the local tax levy,? he said.
By taking advantage of favorable interest rates in the current bond market, the district issued $36,955,000 in lower interest rate bonds to replace the higher ones sold in 2001.
‘Our school district is continually looking for ways to save taxpayer dollars,? Brennan-Kyro said.
She compared the district’s actions to a homeowner who refinances their mortgage with the onset of low interest rates.
‘Needless to say, we were pleased with the final results and the aggressive market approach taken by our underwriter,? she said.