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District Saves Taxpayers $1.3 Million by Refinancing

By taking advantage of of low interest rates, the school district helped ease the burden on tax payers for the long term.

In an era where the purse strings for school districts across the state are growing tighter and tighter, it takes some creative financing to stretch dollars further.

The Menomonee Falls School District is doing just that, and Business Director Jeff Gross has helped lighten the burden for taxpayers in the district moving forward for the next decade or so.

The district refinanced roughly $9.9 million in debt issued in 2007 to capitalize on historically low interest rates on the bond market. Gross, along with consultants at PMA Financial, kept their eyes on the market for over a year with the though of refinancing. Last week, eight financial firms placed 41 bids for the bonds.

In the end, the district will save roughly $1.3 million over the next 15 years. Although the funds won’t directly impact the operating budget in the district, the savings will have a $90,000 annual positive impact on the tax levy for residents.

The district’s Aa2 rating from Moody’s was a primary reason the debt was refinanced at such a competitive rate. Superintendent Patricia Greco said Falls is one of 17 school districts — out of roughly 400 in the state — to sport a Moody’s bond rating at that level.

School Board Member Scott Ternes said the refinancing is essentially a lower mortgage payment for the district. The savings from lower interest rates will be placed in an escrow account, and will be used when the 2007 bonds come due. 

Steve ® January 17, 2013 at 03:19 AM
Refinanced the solyndra hotel
jerry mislang January 17, 2013 at 02:11 PM
Please don't stop there, keep looking for more ways to save some cash. Sounds like a win for the home team to me.
atthec44 January 17, 2013 at 02:33 PM
School board member Gina Palazzari signed a Scott Walker recall petition. I highly doubt she has the taxpayers best interests in mind. Her term is up in April 2014. Vote her out!

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