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“We are happy that we were able to realize a savings for the community,” Superintendent Tony Thomas said in a statement. “We are so thankful for the support community members have shown and we are working hard to make sure we make good fiscal decisions.”
Bernardo said Northmont was already in the advance refunding process when they learned that pending federal tax reform would eliminate that option starting in January 2018.
“This tax reform code gave us an added incentive to finish (refinancing) this calendar year,” Bernardo said, pointing to the city of Union as another agency doing the same thing to try to get ahead of the tax code.
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Northmont officials cited the district’s strong Aa2 bond rating and favorable timing, as interest rates had dropped, for the ability to refinance. The bonds would have been paid off in 2049, but after refinancing, they could be paid off about two years earlier, Bernardo said. Taxpayers will save $5.6 million over the life of the bond because of the lower rate.
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