Madison School District looking to save money on old bonds

Madison School District said it wants to save taxpayers money to the tune of $1.2 and $2 million over the next 12 years. That’s IF the school district can secure a bond refund like it wants to on February 24.

A bond refund works similarly to refinancing a car. The district issues a new bond to pay off a remaining balance on its old bonds but secures a lower interest rate in the process. That means taxpayers pay less money in interest and ultimately pay less in property taxes.

“Originally they (the bank) came and said we could save $1.2 million based on the current market rates,” said Varr Snedaker, the business manager for Madison School District. “A week or so ago they said we could possibly save $2 million.”

Madison School District also plans to place the proceeds of the new bond sale into a trust fund or escrow account. Snedaker said the district will make money off the interest for several years.

The school district tried to do a similar financial move two years ago, but “the market just wasn’t right and it didn’t make financial sense,” said Snedaker

Now with more favorable market conditions, the district hopes to make the move before the market changes. Snedaker said they’ll know for sure on February 24 if the bond refund will happen.