Auburn School District refinances bonds
May 4, 2012 · Updated 12:00 PM
Auburn School District refinanced a portion of its outstanding bonds in order to take advantage of lower interest rates.
The recent refinancing will save the district's taxpayers a total of $1,429,020 during the next 10 years, school officials said. The savings go directly to taxpayers through reduced tax levies and are not available for district expenses, they said.
The savings equates to 14.39 percent of the present value of the bonds.
The Auburn School Board accomplished these savings by approving the issuance of $9,290,000 in refunding bonds at the school board meeting held on March 26.
The district has been monitoring bond market conditions over the past year and recent low interest rates allowed the district to exceed its savings target.
Interest rates averaged 2.13 percent on the new bonds, compared to 4.97 percent on the old debt.