Princeton Public Schools recently took advantage of an opportunity to refinance a portion of the district's outstanding debt and generate more than a half-million dollars in savings for taxpayers.
On November 9, 2023, the school district closed on the issuance of $12.51 million in refunding bonds to refinance debt originally issued in 2014. By refinancing and paying off some of the principal early, the district will save an estimated $512,684 in interest payments over the remaining life of the bonds.
"We're pleased to have secured these savings for our taxpayers," said Superintendent Ben Barton. "Refinancing debt is a smart strategy and one that is financially responsible at this time. As we contemplate a future bond referendum, our goal is to mitigate the tax impact any way that we can."
The school board and administration worked with Ehlers, public finance advisors, to determine the optimal timing for the refinancing. While rates are expected to continue rising, current rates were attractive enough to generate savings.
Superintendent Barton noted, "We take our responsibility to be good stewards of taxpayer money very seriously. Prudent financial management is key to providing exceptional educational programs in a cost-effective manner."
The school district is also proud to report that it has maintained its strong Aa3 credit rating from Moody's Investors Service, which analyzed the district’s financial position as part of the bond refinancing process.
For more information about the District’s finances, visit the school district website at https://www.isd477.org/district/dc/payroll-finance or call 763-389-6183.
- Tiger Times