By refinancing some of its debt to a lower interest rate, Burnsville-Eagan-Savage School District 191 will save nearly $6.14 million in interest over a 15-year-period.
The timing was perfect and savings are greater than expected because interest rates are at a 50-year low, according to Jeff Seeley of Ehlers and Associates. In addition, he said there was a lot of interest in the bond sale because the district has a strong financial rating.
The process is similar to when homeowners refinance their mortgage to take advantage of more favorable interest rates. The money saved will result in lower future levies for debt repayment, which will be a direct savings to taxpayers.
"We continually review our finances to look for places we can save money or reduce costs," said Lisa Rider, executive director of business services. "We have refinanced similar bonds in past years whenever it is possible."
A third bond is a possible candidate for refinancing in the near future.
“Timing is critical and it is the reason we work closely with our financial advisors of Ehlers and Associates to determine the ideal timing to maximize the savings to taxpayers,” said Rider,