LANCASTER, Ohio – Lancaster City Schools has taken advantage of historically low interest rates in the bond market to continue an aggressive refinancing campaign to be good stewards of taxpayer dollars as it pursues the completion of its master building plan.
The District’s most recent effort was completed March 25, 2021 when they issued $12,925,000 of Refunding Bonds to refinance a portion of its 2016 bond issue, which bonds were originally issued to build the new junior high school buildings.
The overall savings exceeded the minimum benchmark for savings. Many school districts target a savings of at least 3% percent of the amount to be refinanced. This refunding saved more than 4.48%. In terms of today’s dollars, the savings is equal to $497,451.48.
“This is an example of how we can make prudent decisions that save the district money without impacting our mission,” said Steve Wigton, Superintendent, Lancaster City Schools. “This opportunity would not be possible without the strong support of our community and the ongoing diligence of our school treasurer and partnership with Rockmill Financial Consulting to ensure we are constantly monitoring and responding to the market appropriately.”
The school district began working with Rockmill Financial Consulting in 2013 to oversee the District’s financings and to think strategically about how to lower resident’s taxes. A combination of low interest rates, an excellent credit rating (score), and good market timing allowed the District to save more than $824,000.00 in interest cost over the next 13 years.
David Conley, President of Rockmill, the District’s financial advisor says, “Lancaster School’s bonds were well received by investors. We had more than $45 million in orders for the District’s bond, which indicates the District has done a remarkable job insuring they remain attractive in the bond market.”