Wayland Union School Distr
ict taxpayers will save an estimated $4.5 million in interest over the remaining life of the current bonds due to bond refunding.
Bond refunding is the concept of paying off existing debt with bonds with lower interest rates that have a lower net cost to the issuer of the bonds.
The estimated savings is based on refunding bonds from 2007 totaling $9,755,000 that will mature between now and May 2024, bonds from 2008 totaling $33,030,000 that will mature between now and May 2028 and refunding of school bond loan fund balance of $24,304,657, which has payments made annually until the balance is paid in full.
The projected savings from the refunding is $4,640,393 with a net present value savings of $3,875,536. This means the taxpayer of the district will pay $4,640,393 less in interest over the remaining life of the bonds which has a value in today’s dollars of $3,875,536.
Superintendent Norman Taylor stated “We are excited to have this major refunding opportunity be a significant cost savings to our school district taxpayers.”
Anyone interesting in purchasing bonds should contract Fifth Third Securities who will serve as the district’s bond underwriter on the refunding.