Bond refunding saves Utica Community Schools taxpayers more than $400,000 in interest costs

Utica Community Schools is saving taxpayers more than $400,000 in interest costs through a recent refunding of voter-approved bonds.

The district recently refunded $10.3 million in previously sold bonds to take advantage of reduced interest rates in the market.

“The bond refunding demonstrates our commitment to fiscal accountability and protecting the investment voters have made in our schools,” said superintendent Dr. Christine Johns.

Under state law, bonds must be used for capital improvements and may not be used for operating expenses, such as salaries or utilities.

The bonds were originally issued by the district in 2008 and 2009 to support voter-approved facility improvements. The recent refunding of these sales will reduce interest costs by $446,284 over the remaining eight years of the bonds.

In addition to the refunding, the district also recently issued $8.5 million in new bonds to finance projects approved by voters in 2009.

Proceeds will support projects from the 2009 bond issue that address safety and infrastructure, create parity between district facilities and upgrade technology.

“Utica Community School Bonds were well received by the bond market,” said Brenda Voutyras, Managing Director with Stifel, a financial advising firm that assisted in the sale of the bonds. “We were able to take advantage of current interest rates that met the goals of the District and provided a lower cost of borrowing than originally anticipated and resulted in refunding savings that will be passed on to the taxpayers."