By Staff
NILES – Brandywine Community Schools announced savings of more than $380,000 in total debt service costs from the originally forecasted cost of the recently approved $5,750,000 bond issue, reported a press release from the school district.
Brandywine was in the enviable position of being able to time their entry into the bond market and capitalize on the low rates currently available, the release indicated.
"This action demonstrates that the school district is continually looking out for the interests of our taxpayers," said Susan Furney, director of finance and operations.
"In the same way many of our homeowners are taking advantage of the lowest mortgage rates in decades, the low interest rates available in the current bond market presented the opportunity for us to achieve similar savings. Needless to say, we were pleased with the final results, and the aggressive market approach taken by our underwriter and financial advisor."
The bonds, underwritten by UBS Securities LLC, sold at an average interest rate of 4.29 percent, or about .71 percent lower than expected.
This produced over $380,000 of interest cost savings for the community from the original projections.
"The additional effort committed by the staff of Brandywine Community Schools to qualify for the School Loan Revolving Fund enhanced the high credit quality of the bonds.
"The Board of Education and Administration are to be commended for their efforts to achieve the lowest possible interest cost for the taxpayers of the District," said David Kahn, executive director of the Lansing office, UBS Securities LLC.