COLUMBUS: Ohio school districts are taking advantage of low interest rates by refinancing bond debt, potentially saving taxpayers millions of dollars.
Director David Varda of the Ohio Association of School Business Officials says it’s similar to refinancing a mortgage. He tells the Columbus Dispatch that school districts are aggressive in watching interest rates and looking for chances to save.
The Federal Reserve has decided to keep benchmark interest rates near zero for the next two years, unless economic conditions change dramatically. Hilliard school district chief financial officer Brian Wilson Ohio says the current rate climate make it a good time to refinance.
Central Ohio’s Hilliard district expects to save $2.3 million by chopping its bond rates that are as high as 5.25 percent down to 2.7 percent.