By Sophie Pappas
Supt. Robison along with ZCS Chief Financial Officer Mike Schafer announced that the schools have saved more than $13.1 million through bond refinancing this year.
“This is some unbelievably outstanding news,” Robison said.
“This is indeed exciting,” Schafer said. “The bonds that were refinanced were initially from 2005…we were very fortunate in achieving what might be considered the exact opposite of the perfect storm. It might be deemed a good weather day.”
What $13.1 million saved really means for Zionsville residents is that over the next several years there will be a lower tax rate for the tax payers
Schafer said that ZCS is “very far away from having solid numbers… but we are hopeful that this will make a tangible difference for us.”
For 2015 debt service rate will be between five and seven cents lower. In 2016, this will be nine to 11 cents off the tax rate.
“So we are very pleased with this,” Schafer said. “This is a direct reduction in the tax rate for the school corporation.”
Consultants from KeyBanc Capital Markets Inc. spoke at the meeting.
Thomas Coverick addressed the board and said: “We’re going to talk a little bit about saving,” noting that the $13.1 million is actually “an impressive $14.595 million in gross savings.”
Summary of Refunding Results
Arbitrage yield-2.494274%
Escrow yield-0.059414%
Value of Negative Arbitrage-1,892,579.91
Bond Par Amount-96,255,000.00
True Interest Cost-2.549748%
Net Interest Cost-2.703600%
All‐In TIC-2.581681%
Average Coupon-3.905657%
Average Life-8.152
Duration-7.059
Par amount of refunded bonds-100,520,000.00
Average coupon of refunded bonds-4.981477%
Average life of refunded bonds-7.974
PV of prior debt to 09/30/2014 @ 2.494274% -119,262,805.20
Net PV Savings- 13,169,415.11
Percentage savings of refunded bonds-12.101288%
Percentage savings of refunding bonds-13.681798%
