Bond Refinancing to Save Seneca Valley $500,000

Seneca Valley will see savings of $500,000 after refinancing a bond issued in 2003.

School board members in February authorized its bond counsel from Dinsmore and Shohl LLP to move forward with refinancing an $8.87 million bond in the hopes of lowering the interest rate.

At Monday’s school board meeting, officials learned the refinancing yielded better than expected results.

Business director Lynn Burtner said the district was able to capitalize on an interest rate of less than 1 percent for the loan until it is paid off in 2017. The previous interest rate for the bond was between 3 and 4 percent.

The move will save the district about $500,000 in interest payments. Originally, Burtner estimated the refinancing would save the district about $400,000.

“We were very fortunate how it worked out for us,” she said.

The district typically considers refinancing when there’s a chance of saving 2 percent or more on the amount it owes.

Burtner previously has said the district constantly exams ways to take advantage of lower market rates.

“We always take opportunity to refinance when possible,” she said.

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