KINGSTON – Low rates are enabling the Silver Lake Regional School District to save more than $400,000 in debt service savings over the next seven years by refunding bonds to refinance debt.
Director of Business Services Christine Healy said the debt still won’t be paid off until fiscal 2027, the final year of the loan, but the rate on the current debt is between 3.5 and 4 percent and the new rate is 1.355 percent.
Healy has been working with financial advisor Lori Lombard of Unibank for about a month to get this done. Healy also worked with Lombard on the district’s last refunding of debt in 2015 of bonds from 2009.
“She brought to my attention that we were in the position where we could actually have a savings if we decided to refund our debt,” Healy said.
The Silver Lake Regional School Committee took a series of votes Oct. 1 to approve the sale and award of bonds to JP Morgan Chase Bank with the required documentation from bond counsel to be returned by Wednesday with the closing Friday, Oct. 9.
Refunding replaces outstanding callable bonds with new bonds, usually to refinance outstanding bond debt.
Silver Lake Regional School Committee Paula Hatch thanked Lombard for again letting officials know the district is in a position to achieve some savings over time.
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Read More: Silver Lake achieves financial saving by refunding bonds – News – Wicked Local