A process that started approximately 18 months ago came full circle for Keystone Local Schools this week. This District finalized plans to refinance $14.210 million in outstanding bonds used to construct the new school facilities. By lowering the overall interest expense and refinancing with tax-exempt bonds the District saved taxpayers $2.468 million on the outstanding debt. The final maturity date of the outstanding bonds remains the same as the original bonds, maturing on 12/1/2040. The new tax-exempt bonds will also have an additional prepayment option to take advantage of potential future lower interest rates.
Mike Resar, Treasurer/CFO, in conjunction with his finance team and the KLSD Board of Education, made the decision to refinance the debt as tax-exempt. Resar stated, “we waited to refinance the debt as tax-exempt bonds which would provide greater savings than taxable bonds. We put together a financing plan at the ideal time. This saved our taxpayers an additional $1.2 million versus issuing taxable bonds.”
The District was reaffirmed at their current credit rating of Aa3 with Moody’s Investor Services. Moody’s recognized the prudent and conservative fiscal approach the administration takes toward revenues, while maintaining promises to the taxpayers in limiting the number of tax levies put on the ballot. Moody’s applauded the District on their general fund reserves and their ability to control expenses while maximizing revenues.