Northmont City Schools to save millions by refinancing

Northmont City Schools said this week that the district and its taxpayers will save $5.6 million over the next 30 years, thanks to a bond refinancing that was just completed.

Via the “advanced refunding” process, Northmont issued new bonds at a lower interest rate than the old bonds first issued to pay for the new Northmont High School and Kleptz Early Learning Center, district treasurer Ann Bernardo said. Entities like school districts, corporations and municipalities can use this option, which is similar to refinancing a mortgage to a shorter term to save money.

“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.

MORE: Northmont honors 4 early learning center volunteers

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.

In Other News

Dayton medical equipment manufacturer lays off 86 employees

Beavercreek Kroger gas station remains closed after truck fire

Xenia extends moratorium on emergency room facilities amid proposed...

Dayton holiday tree arrives at Courthouse Square

Dayton police cruiser responding to call collides with car that runs...

About the Author

Bonnie Meibers

Bonnie Meibers is a general assignment reporter covering Greene County for the Dayton Daily News. She has been with the newspaper since July 2019.