Lincolnview saves taxpayers $2.9 million

Lincolnview Local Schools information

The Lincolnview Local School District recently saved nearly $3 million by refinancing several bond issues in February.

On February 19, the Lincolnview Local School District refinanced its outstanding School Improvement Refunding Bonds issued in March 2005; school construction bonds issued in December 2005; and the school construction bonds issued in February of 2006 for a significant savings to the district.

Similar to a homeowner, the district regularly checks its debt and current interest rates to determine if refinancing is a worthwhile option.

The district worked with Dinsmore & Shohl LLP, the district’s bond counsel, and Fifth Third Securities Inc., the district’s underwriter, to take advantage of the low interest rate climate and refinance the Bond issues with final closing for the Series 2015 Bond Issue taking place on March 19.

The amount of the new bond issue is $9.47 million. The total savings to the district is $2,958,096, which resulted from locking in lower interest rates and from the school district making an early “cash” contribution/retirement payment.

According to Treasurer Troy Bowersock, the savings will be passed onto district taxpayers in the form of reduced taxes needed to repay the district’s debt, with the majority of the savings to be realized in the final years of the debt payments.

The district qualified for the State Credit Enhancement Program to provide added benefit to the Bond sale. The bonds were marketed with a rating of Aa2 from Moody’s Investors Service based upon the district’s acceptance into the state program. This ultimately meant a lower interest rate (locking in an average coupon interest rate of 2.89 percent) and a higher level of savings to the district.

In addition to the debt service savings, the district’s 2015 bond issue has a final maturity of December 1, 2029, which is four years earlier than the original outstanding bond issues final maturity date.

Bowersock noted that the Lincolnview Local School District and Board of Education continually review and monitor the budget and operations of the school district in an effort to maintain an efficient operation and stable financial position while providing quality educational programs to the Lincolnview students.