D308 Considers Refinancing Bonds To Save $5.6M In Interest

OSWEGO, IL — The Oswego Community Unit School District 308 Board of Education is considering refinancing bonds from 2016 to save a "significant amount of money" on interest rates, officials said.

At its July 28 meeting, Robert Lewis, the district's municipal advisor from PMA Securities, recommended that the district refinance its Series 2016 Bonds, totaling about $88 million. The bonds will be callable starting Feb. 1, 2026, and will be eligible for tax-exempt refunding within 90 days of the call date.

District 308 decided to ask the Board to consider refinancing, starting with refunding the 2016 bonds and issuing new ones.

"Everything we do is aimed at greater transparency, fiscal responsibility, and identifying opportunities to save," Superintendent Andalib Khelghati said at the meeting.

Chief Financial Officer Raphael Obafemi likened the opportunity to refinancing a mortgage: The current bonds have an interest rate of 5 percent, while the estimated all-in cost of the new bonds is 4.1 percent.

The switch would save an estimated $4.5 million at present and about $5.6 million over the life of the bonds. The money would go back to taxpayers, not to the district, according to Obafemi.

"The rapid growth in our area during the early 2000s required us to build several schools quickly, resulting in a significant accumulation of debt," Board President Dominick Cirone said in a statement. "We're now reaching a point where those costs are beginning to ease, and opportunities like this allow us to restructure and save on behalf of our community."

If the Board decides to move forward, the proposed next steps are:

• August 2025: Board consideration and approval of a parameters resolution
• Late September to early October 2025: Bond sale (subject to market conditions)
• November 2025: Closing of the refunding transaction