The Centralia School District on Wednesday announced the refinancing of voter-approved bonds issued in 2017, a move the district says will cut $5.75 million from the amount owed by taxpayers.
According to the Wednesday news release, the bonds have helped fund capital improvements at Centralia High School and Jefferson Lincoln and Fords Prairie elementary schools. They have also been used to fund technology and safety improvements.
According to the district, the voter-approved projects will not be changed, and the district cannot use the savings for staffing, programs or other expenses.
“This was an opportunity to reduce the cost of an obligation our taxpayers had already approved,” Superintendent Dr. Lisa Grant said in the release. “The District does not receive additional money from this transaction. The benefit goes directly to our taxpayers by reducing what will need to be collected to repay the bonds.”
The district likened the bond refunding to refinancing a mortgage when market conditions are favorable, and said taxpayers should begin to notice the benefit of the reduced bond debt-service requirements in 2027.
“The purpose is simply to reduce the cost of repaying debt that already exists,” the district said in the release. “For Centralia taxpayers, this refunding means approximately $5.75 million less will need to be collected over the remaining life of the bonds.”
The bonds are still on schedule to be paid off in 2041, according to the district.
