Refinancing saves district money

Refinancing of two bonds that the Milaca School District owes money on will save district taxpayers about $765,000 over the next 17 years.

The Milaca School Board refunded (refinanced) the two bonds at its Nov. 13 meeting.

One bond, from 1991, was used for the remodeling of the high school and was for $6.1 million.

That bond was sold at an interest rate of 4.3 percent and the rate was dropped to 2.15 percent by the board’s action last week.

The 1991 bond is due in 2020 and the savings will be $152,600.

The other bond, sold in 2009 for energy remodeling in the district, was for $6.76 million and is due in 2029.

With the interest rate dropping from 4.5 percent to 2.2 percent, there will be a savings of $612,400.

“That isn’t money that goes to the school district,” Superintendent Jerry Hansen reminded in an interview Monday. “It comes off the tax rolls so it’s a saving for taxpayers.”