The Canton Local School District with the help of Ross, Sinclaire & Associates, LLC and Stifel Nicolaus recently refinanced part of the outstanding series 2014 bonds to take full advantage of the favorable conditions in the municipal bond market.
The bonds had originally been issued for the purpose of constructing new facilities, and improving existing facilities. The $8,339,600 refinancing will save taxpayers of the district $1,353,714 in gross debt service savings over the life of the issue. That translates into an annual gross savings of approximately $50,138 for the next 27 years and significantly reduces the net interest cost of the Bonds from over 4.9 percent to approximately 3.26 percent. The bonds are a voted debt of the district, and the interest savings passes directly to district taxpayers by reducing the amount of property taxes collected to pay off the debt.
The board of education strives to take advantage of every opportunity to reduce taxes for the district's constituents.
"It is very unusual to have an opportunity to refund bonds only two years after the original issuance," said treasurer Jason Schatzel. "Current interest rates in the municipal bond market offered a chance for the district to save our taxpayers a significant amount of money. The district will monitor the bond market and will take advantage of any future opportunities for savings."