Wednesday, February 20, 2002
|
Wednesday, February 20, 2002 |
|
School system refinance saves taxpayers $1.3 million An approved refunding of school bonds has generated a $1.3 million savings for Fayette County taxpayers. The resolution to refund the Series 1992 bonds was approved last month by the Fayette County Board of Education during a special called meeting. The school system generated the savings by taking advantage of this year's dramatic drop in interest rates. "When we have an opportunity like the reduction in interest rates where the result will be a savings for the taxpayer, we feel we have an obligation to take advantage of it," said comptroller Jim Stephens. Monetary savings can be used only to keep the bond propety tax rate as low as possible and does not affect maintenance and operation expenses of the school system, according to Stephens. The $1.3 million savings will be accrued over the next eight years. Due to laws governing bonds, refundings cannot exceed the term of the original obligation, which in this case is eight years. Currently, the board of education has refunded all bonds that are eligible for this issue period, said Stephens. Two additional refundings in 1999 of the 1991 Certificate of Participation and the 1994 bond resulted in approximately a $2 million savings for taxpayers.
|
||