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Tag Archive | "Thrun Law Firm"

School saves taxpayers $368,000


 

That’s over $3.5 million the last three years

The Cedar Springs Public School district took advantage of a low interest rate and refinanced a portion of their outstanding 2008 refunding bonds, saving taxpayers over $368,000 over the next six years. 

The 2018 refunding bonds were sold in the amount of $6,415,000, at a true interest rate of 2.015 percent with a final maturity in 2024.

In preparing to sell the 2018 Refunding Bonds, the School District, working with their financial advisor, PFM Financial Advisors LLC, requested that S&P Global Ratings, acting through Standard and Poor’s Financial Services LLC (“S&P”) evaluate the School District’s credit quality. S&P assigned the School District the outstanding underlying rating of “A+.” The rating agency cited the School District’s stable enrollment trend, strong reserves and moderate debt in their rationale for rating of the School District at this level.

“I’m so thrilled that for the third year in a row we were able to refund bonds and save the taxpayers of Cedar Springs an additional $368,000 over the next six years!” said Dr. Laura VanDuyn, Superintendent. “When added to the savings of $680,000 in 2017 and $2.5 million from the 2016 refunding, that’s over $3.5 million dollars in total savings for the taxpayers of Cedar Springs.”

The School District’s financing was conducted by the Michigan investment banking office of the brokerage firm, Stifel, the financial advising firm, PFM Financial Advisors LLC and the law firm serving as bond counsel, Thrun Law Firm, P.C.

Jeffrey Zylstra, Managing Director with Stifel stated, “Cedar Springs Public Schools’ Bonds were well received by the bond market. We were able to take advantage of current interest rates that met the goals of the District and resulted in a nice savings that will be passed on to the District’s Taxpayers.”

According to Mike Gresen, with Thrun Law Firm, P.C., the school district currently has six outstanding bonds, and after May, there will only be five left to pay off. He told the Board of Education Monday evening that with interest rates going back up, he didn’t see any other opportunities in the future to refund any of the remaining bonds. “You have reduced what you can for your taxpayers,” he said.

The 2008 refunding bonds were sold for the purpose of refinancing the outstanding 1998 refunding bonds, which they sold for building projects. At the time, they went from a rate of 4.98 percent to 3.74 percent, with a prediction to save taxpayers $2.5 million over 16 years (until 2024). 

Posted in Cedar Springs Public Schools, NewsComments (0)


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