Wayland Union Schools successfully entered the bond market Friday, Nov. 1, to refund the current School Bond Loan Fund (SBLF), as directed by the Board of Education.
Refunding a bond is somewhat similar to refinancing a home mortgage to take advantage of lower interest rates.
The district’s financing was conducted by Hilltop Securities; the municipal advising firm, PFM Financial Advisors LLC; and the law firm serving as bond counsel, Thrun Law Firm, P.C.
The bonds were well received by the bond market and the district was able to take advantage of current low fixed rate interest rates, that meet the goals of the district, will result in significant savings that will be passed on to the district’s taxpayers.
Assistant Superintendent of Finance and Operations Pat Velie, said that using this process available to public schools, the district will save more than $400,000 in debt interest payments that would have been due over the next 10 years. The SBLF debt is a variable rate (2019 = 3.44% and fluctuates annually) and refunding the SBLF balance to a fixed rate of 2.35% will net the district the interest savings.
