The Johnstown-Monroe Local School District, with the help of Ross, Sinclaire & Associates, LLC, has partially refinanced its outstanding Series 2014 bonds to take advantage of the favorable conditions in the municipal bond market.

The Johnstown-Monroe Local School District, with the help of Ross, Sinclaire & Associates, LLC, has partially refinanced its outstanding Series 2014 bonds to take advantage of the favorable conditions in the municipal bond market.

District treasurer Zack Niblick said the district recently had an opportunity to take advantage of historic low interest rates.

The 2014 Series Bonds originally had been issued for the purpose of constructing and renovating school facilities.

The $11,864,729 refinancing will save taxpayers of the district $1,266,594 in gross debt service savings over the life of the issue, according to Niblick.

That translates into an annual gross savings of about $45,235 for the next 28 years and significantly reduces the net interest cost of the bonds to 3.37 percent.

The bonds are a voted debt of the district, and therefore the interest savings directly pass through to district taxpayers by reducing the amount of property taxes collected to service the debt, Niblick added.

"The portion of our bonds that mature after Dec. 1, 2022, are able to be refunded," he said.

"Essentially, the district (issued) new bonds with a lower interest rate that will pay off and replace the original bonds. Interest rates have dropped considerably since the district's original bond issue, and refunding them now allows us to capture savings from the lower interest rates."

School board president Ruth Ann Booher previously said that opportunities like this do not occur often, and the administrative team continues to look for cost savings.

District Superintendent Dale Dickson, Niblick and the board of education strive to take advantage of every opportunity to reduce taxes for the district's constituents, a press release from the district said.

"Board and management's decision to capitalize on favorable bond market conditions provided a great opportunity to save money for the community," the release said.

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