Blog: a web log
06/10/2003: "Jeffco Schools saves millions by 'refinancing' bonds"
Jeffco Public Schools will save district taxpayers over $1.7 million over the life of bonds purchased in 1998 due to a refunding of those bonds.
A refunding of bonds is similar to refinancing a home. New bonds are issued to take advantage of lower interest rates. The new bonds pay off the old bonds and the school district receives savings in interest payments as it repays the new bonds.
By taking advantage of low interest rates, the district was able to refund $48.3 million of the 1998A bonds, which were issued as part of the five-year capital plan, according to Jeffco Public Schools’ chief operating officer Ken Hoover.
“This refinancing translates into an annual savings of more than $150,000,” said Hoover.
The district will continue to monitor its other outstanding bond issues for future refunding opportunities and potential savings for taxpayers.
