The Ravenna School District will be refinancing almost $10 million in remaining debt from construction of Ravenna High School. But homeowners won’t save much money because interest rates were low to begin with.
Craig McKendry, treasurer of the district, said the board agreed to refinance $9.77 million in debt remaining from the construction of Ravenna High School in 2006. The district will be lowering its interest rate to about 1.7 % from rates ranging from 2 to 3.25%, saving a cumulative total of $719,297.48.
Savings to individual homeowners will be small, and will be reflected in the second half of property taxes in 2021, McKendry said.
Eric Prall, managing director of Hilltop Securities, made a presentation to the board recently. The bonds will be refinanced through Huntington Bank, he said.
Prall said that the district made a similar move in 2012 and 2013, allowing taxpayers to save more money. This move, he said, will allow them to save a little more.
“The rates are already extremely low, but we were able to get them even lower,” he said.
A series of bonds for the school construction are eligible for the refinancing, he said.
McKendry said many school districts are taking advantag of historically low interest rates, which allow for savings on bond issues.
“They’re keeping rates low to prevent against inflationary measures,” he said.