District refinances bond issue to save taxpayers more than $1 million

(October 7, 2009)-On October 14, 2009 the Voorheesville Central School District will close on the refinancing of the District’s 2001 bond issue, saving the District taxpayers a total of $1,142, 177, or an average of $95,000 a year for the next 12 years. Savings begin immediately in the 2009-2010 school year.

The original bond was issued July 15, 2001, and the proceeds were used to pay for the additions to the then Jr. Sr. High School. That bond was to be completely paid off June 2021.

“The District was able to take advantage of the record low cost municipal bond market. By refinancing now, the original bond will be completely paid off, and the remaining principal will be financed at a much lower interest percent,” said Assistant Superintendent for Business Sarita Winchell. Payments on the refinanced bond will be finished the same time the original bond was to be completely paid, June 2021. “Not all municipal debt can be refinanced due to arbitrage laws and regulations. We are fortunate that this bond issue meets all of the requirements for refinancing,” Winchell added.

“The District is very aware of the financial pressures felt by the residents,” said School Board Audit Committee Chairperson, Tim Blow. “The School Business Office has done a great job of finding an innovative way for the taxpayers to receive some benefit from the current economic environment.”

The savings to the District come at a time when school districts are facing financial pressures due to the uncertain future in the funding levels from New York State and the Federal governments, plus the rising costs for health insurance and retirement system contributions.

“This was the perfect opportunity for us to prudently and conscientiously manage the District’s resources to attain a significant savings over the next twelve year,” said Superintendent Dr. Teresa T. Snyder. “It speaks well of the fiscal oversight and of the credibility of the District in the bond market.” The District received an “AA” with stable outlook” bond rating from Standard and Poor’s.