FENNVILLE — Taxpayers in the Fennville Public School district are set to save a significant amount of money after the district refinanced some existing bonds.
The district will close on the refinancing later this month and expects to save just over $337,000 in future interest by securing a lower interest rate on the bonds from its 2004 proposal.
Voters initially approved these particular bonds as part of a 25-year, $25.76 million proposal in 2004.
In 2012, the district refinanced the $14,095,000 that remained on the bonds at the time, saving $1,820,000 in future interest.
Now, the Board of Education is refinancing the remaining $7.8 million to save another $337,000 over the last nine years of the bond, which runs through 2029. In total, the district has saved $2,157,000 in interest through securing lower rates.
“This board has been very diligent about making good use of and being good stewards of taxpayer dollars,” Superintendent Jim Greydanus said. “When we have opportunities to save and it makes sense to do so, our board is going to jump at those opportunities.”
The savings this time around aren’t as significant as in 2012, but Greydanus noted that the district is lowering an already reduced interest rate, and that there was twice as much money remaining the last time the district refinanced.
“In the end, we just want to make sure we’re getting the most for taxpayer dollars and save as much as we can,” he said.
Greydanus said that, because there is some cost associated with refinancing, it’s not something districts look to do on a regular basis, but periodically when lower rates are available.
“It’s like refinancing a house, there are some costs to refinancing,” he said. “You don’t want to do it over and over, but when the difference in interest makes sense and you’ll realize some significant savings, it’s a good move.”
Greydanus said there isn’t a uniform interest rate for the bonds due to varying maturity dates, but the average of the refinanced bonds is 1.418 percent.
— Contact reporter Mitchell Boatman at firstname.lastname@example.org. Follow him on Twitter @SentinelMitch.