Sycamore Schools Saving taxpayers nearly $2.4 million
Sycamore Community Schools is saving taxpayers nearly $2.4 million through bond refinancing. On September 6, 2016, the district refinanced $18,445,000 in outstanding debt. The move will save the district approximately $2.37 million over the next seven years.
“The Board of Education and administration are committed to being responsible with our taxpayer dollars. This is yet another great example of the Board’s sound fiscal practices,” said Frank Forsthoefel, superintendent.
By refinancing, Sycamore reduced the amount of outstanding debt to $16.725 million and reduced the net interest cost from 4.4% to 1.22%. The debt comes from a bond issue originally approved by voters in 1998.
Just as homeowners are able to refinance their mortgage to take advantage of lower rates, Sycamore Schools had the opportunity this year to refinance this outstanding debt.
“We always look for opportunities to reduce our costs,” said Beth Weber, treasurer. “This was another way for us to responsibly manage the resources provided by the community.”
While the final bond payments will be made in 2023, the district will be able to stop collecting taxes on this issue in 2022. Homeowners may also see a slight deduction in property taxes related to this bond issue.
Sycamore Community Schools also recently received confirmation of the District’s top-notch AAA rating from Standard and Poor’s. Sycamore is one of four Ohio public school districts and one of 71 public schools in the U.S. to maintain an AAA bond rating, the highest available.