MCC refinance expected to save taxpayers money.

December 11, 2014

mcc schoolsBy Rob Alway. Editor-in-Chief.

SCOTTVILLE — Mason County Central School District is in the process of refinancing its most current building debt, a move that will save taxpayers about $801,658 in interest over the next 12 years.

The interest savings is tied to the district’s 2006 millage vote which paid for the building of Scottville Upper Elementary, a new gymnasium at the high school, renovations to A.O. Carlson Gymnasium at the high school, an expansion of Scottville Elementary and upgrading at the middle school. The current debt is just over $9 million.

“This is great news for the taxpayers of Mason County Central School District,” said Superintendent Jeff Mount. “It certainly is a good day when we can save over three quarters of $1 million for the very people who so generously supported our 2006 bond. They trusted us then to get the best bang for every tax dollar raised and we have continued to look for ways to keep that promise eight years later.”

In layman’s terms, the school refinanced its debt, said district Business Manager Kris Courtland-Willick, who along with financial advisers, found the lowest interest rates.

“The rule of thumb is that when the value of the interest savings minus the expenses exceeds 3%, one should consider proceeding with the refi process,” Courtland-Willick said. “Mason County Central was able to achieve more than double the savings at 7.16%, or $801,658.  This savings does not go to the school district accounts, but is passed on directly to the taxpayers in the form of a lower debt millage rate until the bond is paid off.”

The savings for a homeowner of property valued at $60,000 will be about $125 over the remainder of the bond.

“When the interest rates in the market for debt are dropping, you look at the cost/benefit of doing the refinance,” Courtland-Willick said. “Unlike a regular bond, this process is not voted on by the public.”

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