Districts seeks lower interest rate for bonds

By David Fleet
Goodrich-On March 8, the Goodrich School Board voted 6-0 to authorize Okemos-based Stifel, Nicolaus and Company to test the municipal market to sell school districts refund bonds. The refunding bonds are for the purpose refinancing the school districts’ outstanding school bond loan fund balance of $4,626,000 as of May 27, 2021. This refunding will result in the savings of approximately $450,000 in interest to Goodrich district taxpayers and provide an earlier payoff date. The refunding option was reviewed and supported of the school district finance committee.
“What’s taken place here is the district does not receive enough money in taxes each year to pay for the bonds we have,” said Wayne Wright, school district superintendent. “So we need to borrow from the school bond loan fund.”

The interest rate in the school bond loan fund must be a 3 percent minimum by law, said Wright.
“We can go out and test the market and get a lower rate—maybe 1.9 (percent) or 1.8 percent possibly,” said Wright. “It’s a saving for the district and for the taxpayers.”

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