School district refunds bonds

The North Ridgeville City Schools district has completed a refunding of $34.8 million of its outstanding bonds from the 2014 issue, according to a news release from the district.

This will result in savings to the taxpayers of $6,373,192 in interest payments over the life of the bonds, the release said.

As interest rates have continued to increase in the short term, yet remain relatively flat for longer periods, the opportunity to refund (or refinance) became more and more beneficial, the release said.

Through the collaboration of North Ridgeville School District Treasurer Michael Verlingo, the district’s finance committee and Stifel, Nicolaus & Company Inc., a structure was developed to maximize savings and pay off the debt sooner, according to the release.

Achieving these savings for North Ridgeville taxpayers in 2017 became more critical due to changes in tax law that would have prevented North Ridgeville City Schools from refinancing our debt until 2021, the release said.

Although the school system does not receive any additional operating funds from the refunding the taxpayers, North Ridgeville will realize savings over time, according to the release.

This occurs because the amount of taxes levied to pay the debt will be reduced, the release said.