A bond refunding by the Northville Public Schools is expected to save district taxpayers $140,000 in interest costs during the next two years.
In a prepared announcement, district officials said the savings will be generated by selling bonds at a low interest rate and using the proceeds to pay down bonds with a higher interest rate. “The savings are net of all bond issuance costs and directly benefit district taxpayers,” the statement noted.
Superintendent of Northville Schools Mary K. Gallagher explained the decision to pursue this transaction was financial.
“While the bonds being refunded could not be called until this year and had only two years left until they matured, we still felt the savings was significant enough to pursue this transaction. We take our responsibility to the taxpayers seriously, and when an opportunity like this presented itself, we knew it was the prudent thing to do.”
Assistant Superintendent for Finance and Operations Michael Zopf coordinated this transaction for the district.
“I was a bit nervous about the timing given the uncertainty in the market, but I could not be more pleased with the response to our request for bids. The bids we received clearly show that Northville Community Schools has a strong reputation for the way we manage our finances. I am grateful for the work of our financing team that helped put this process together which resulted in these savings,” Zopf said.
District administrators were advised by PFM Financial Services and Thrun Law Firm provided legal services regarding the refunding. The bond sale bid process was led by the public finance arm of Raymond James and Associates.
Local Raymond James Financial Advisor Todd Knickerbocker said he was pleased with the results.
“While Raymond James is a nationally respected financial firm, our success comes from our commitment to our local communities. I live and work in Northville and am proud Raymond James could help our Schools save taxpayers over $140,000,” he said.
