89.1 WEMU

Ann Arbor Public Schools Looks To Refinance Bonds

Jan 18, 2015

The refinancing is contingent, however.

Ann Arbor Public Schools taxpayers will likely get a slight reduction in how much they owe. The district is moving forward with plans to refinance nearly-$39M in bonds, issued in 2006.

With currently low interest rates, the district anticipates saving $3M over the lifetime of the bonds. School Board President, Deb Mexicotte, says the savings for indiviual taxpayers won't be known until the bonds are sold. However, she is certain the reduction won't pay for a big vacation. Mexicotte warns "don't spend your tax break all in one place. It will be a modest tax break for the community." Despite the modest return for taxpayers, Mexicotte is confident that the refinancing "is one of those things that we definitely take advantage of when we can."

The refinancing is contingent on being able to sell new bonds with a true interest cost of 3.5 percent or less, and generate a savings of at least three percent.

Like 89.1 WEMU on Facebook and follow us on Twitter— Andrew Cluley is the Ann Arbor beat reporter, and anchor for 89.1 WEMU News. Contact him at 734.487.3363 or email him acluley@emich.edu.