Bond Refinancing Saves Manchester Taxpayers More Than Expected

By Seth Kinker,

On Feb. 11 at their monthly board of education meeting the Manchester school board was updated on bond proposals that were due last week, helping to refinance a 2009 bond that was a building and site sinking fund.

A process compared to refinancing a house, Manchester Superintendent Nick Steinmentz told the school board they had hoped for the interest rate to be lowered to 2.7%.

After receiving nine bids, Steinmetz told the board he had received a bid for 2.3% resulting in saving Manchester taxpayers $273,000 compared to $167,000.

“When the board originally put them out for refinancing, we put the minimum threshold on what we wanted to recoup in the refinancing process,” said Steinmetz. “We were hoping for 2.7% to get that $167,000 back but it came back and a whole lot more people put in proposals.”

It doesn’t do anything for the district finance wise but will lower the tax base for the community with the millage rate lowering for the bond payments.

Seth Kinker

Reporter/Digital Media for The Sun Times News

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