A savings of $10 million in future debt-service payments has been achieved as a result of Springfield Public Schools refinancing $83.75 million in general obligation bonds.
SPS initially issued these bonds in May of 2006 as part of $96.5 million in bonds approved by voters to fund capital construction projects.
The board authorized the refinancing in Feb. 2014 and the district’s bond consultant estimated the savings would be around $8 million.
During a school board meeting Mar. 4 it was discovered that the amount would be $2 million more.
“The final savings on refunding is $10,262,000, net of all fees and expenses,” Greg Bricker of George K. Baum and Associates said. The low supply of municipal bonds and the district’s outstanding bond rating are to credit for the positive outcome.”
SPS will earn additional income by investing the refunded bond proceeds until the original bonds must be repaid in Mar. of 2016.
Bricker also reported to the school board that the sale of $26.65 million in bonds from the April 2013 bond issue was a success.
The average interest rate on the bonds was 3.52 percent.
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