The XCSs recently completed a refinancing of their 2010 School Improvement Bonds. The 2010 Bonds were issued as a part of the District’s 2010 construction program which constructed the various new school facilities, which was approved by voters on November 3, 2009.
The refunding process, similar to refinancing a home loan to take advantage of lower interest rates, will save nearly $1,300,000 over the remaining life of the bonds. School District Treasurer, Tracy Jarvis began working with Rockmill Financial Consulting, financial advisor, and RBC Capital Markets, bond underwriter, earlier this spring on the project. On October 2, 2014, the District concluded their efforts by issuing $18,505,000 of Refunding Bonds (Series 2014) to replace the 2010 Bonds.
The overall savings is well beyond the District’s initial expectations. Many school district’s target a savings of 2 to 3 percent of the amount to be refinanced. In Xenia’s case the savings equaled 3.24%. The new rate on the 2014 Series Refunding issue is 4.01%. “We are always looking at opportunities to save as much money as possible” said Tracy Jarvis.
David Conley, President at Rockmill Financial, credits the District’s administration team for the improving financial position and management’s fiscal practices for the opportunity to lock in such a low rate. According to Conley, “Tracy Jarvis, Denny Morrison, and the Board have taken great strides in assuring stability in the District’s current financial position and have demonstrated that they are excellent stewards of taxpayer’s dollars. Taking advantage of this savings opportunity is yet another example of their prudent financial management of the District.”
To view a copy of the Bond Presentation, click here.