Refinancing debt saves Allegan district $2.6 million
When Allegan Public Schools saw it could save more than $2 million by refinancing the debt from the 2000 construction project, it took it.
Refinancing in this case is technically called “refunding.” According to district business manager Amy Christman, school board members signed off on the deal at their meeting Feb. 9.
The effort actually began last September, when the school board approved going forward with the plan.
The debt began as the $18.5 million project in 2000 that built the high school aquatic center and performing arts center.
When interest rates improved, the district refinanced the debt in 2005. Interest rates are even better now.
The district has effectively refinanced the remaining $9,995,000. Christman said the 2005 bonds had an average interest rate of 4.9 percent. This time around, the interest rate is 2.67 percent.
For full story, pick up a copy of the Feb. 19 issue of The Allegan County News or subscribe to the e-edition.