Saturday, August 31, 2019
Staff report
POLAND
Refinancing Poland School District’s debt will allow the district to move forward with capital-improvement plans, said schools Superintendent David Janofa.
The Poland school board this week decided to consolidate the district’s debt into one $5.1 million loan with Huntington Bank Public Financing.
The decision is the result of a yearlong refunding program spearheaded by Treasurer Janet Muntean.
The interest rate on the new loan is 2.65 percent. Interest rates for the district’s loans at other institutions ranged from 3.12 to 3.6 percent.
“First and foremost, [refinancing] saves the school district money right off the get-go because of the rate reduction,” Janofa said.
The current outstanding debt is about $4 million, so refinancing allowed the district to borrow an additional $1 million for capital projects.
“It frees up some of the collateral used on other notes,” said Janofa, such as the North Elementary building.
The refinancing also allows the district to reduce its annual payment on the debt by about $130,000 for the first four years, school officials said.
The decision is part of the district’s effort to improve its financial health after a 2017 five-year financial forecast projected a deficit in the year 2022.