XENIA, Ohio (WDTN) — Xenia Community Schools announced that taxpayers will save nearly $20 million and eight years on the bond after completing the sale of bonds Tuesday, a move approved by voters in May to help replace Warner Middle School.
“Often, cost-saving can mean making hard decisions, and finding a true ‘win-win’ scenario is rare,” said Carolyn Huber, treasurer for the district. “But in this case, it was a matter of being financially savvy as a district, and taking advantage of the incredibly low interest rates to save our taxpayers money — while still bringing in the revenue needed to complete the project.”
The bond issue was approved by voters in May based on an estimate of 37 years at 4.25% interest. However, lower than expected interest rates allowed the district to shorten the term to 29 years at 2.32% interest. Ultimately, this will result in collecting $19,881,827 less in taxes from residents over the life of the bond than what was approved by voters on the May ballot.
The decision to take advantage of low interest rates to structure the bonds in this fashion was discussed publicly during the August 2021 regular meeting of the Board of Education. The bond sale then opened on Aug. 31 and closed on Sept. 21, 2021.