MILTON — Milton Area School District will save an estimated $5.6 million in interest from total debt in the district.
At Tuesday night’s public meeting, Business Administrator Derrek Fink informed the school board members that the district successfully refinanced its current debt.
“Our $9.5 million round of bonds that went out for bid earlier in the month came back with better rates than expected and we will realize about $2.7 million in total interest savings over the life of the borrowing compared to initial projections,” said Fink. “And overall, from our initial 2019 projections, we now project to spend about $5.6 million less in interest for the full $30 million.”
Fink highlighted a few points for board members, including refinancing of $3 million in borrowing from 2014 that saved $212,000 in interest. That debt is now paid in full.
Fink said the $9.5 million bonds came in from Janney Montgomery Scott at a 2 percent interest rate over 30 years, which is “practically unheard of in the bond market.” The funds will be used for the high school HVAC, stadium and future Baugher Elementary renovations.
“It’s really been great, it’s really exciting that we can realize those savings based on the way the market is right now,” said Fink. “We really couldn’t pick a better time to go out for those borrowing.”
Fink said the district received an A+ Stable rating from S&P, which made them a desirable investment for bidders.
Because of the success, Fink said he will seek the final proposed borrowing for the end of the year in order to have it completed by January.
“It’s striking while the iron is hot,” he said.
Director Brett Hosterman also updated the public on the capital campaign for the district’s construction project. All big donors will be recognized by the district in the near future.
“I believe we’re approaching the $700,000 mark,” he said. “It’s really great.”
Interested residents can contribute by purchasing brick and pavers, sponsoring lamp posts and auditorium and stadium seats, said Hosterman.
Milton Area’s $14.1 million project consists of a stadium renovation and health complex project.