FAIRBORN — Fairborn City Schools recently completed the final phase of selling the bonded debt approved by the voters last November for construction of the new Fairborn High School complex. School officials expect this closure will save Fairborn residents millions of dollars over the next few years.
The total aggregate interest rate for all debt was 2.65 percent, which is close to all-time lows for a 35 year issue.
”Because of the very favorable market conditions, Fairborn taxpayers will get the benefit of some changes,” treasurer Kevin Philo said in a release.
Voters originally approved the bond for up to 37 years. However, this was recently changed to a maximum of 35 years due to low interest rates. Taxpayers will not have to pay for the remaining two years.
Additionally, officials predict that the millage will reduce by half a mill in six years, which could reduce taxes for the owner of a $100,000 home almost $20 a year, potentially saving Fairborn taxpayers millions of dollars over 29 years.
“Because the district structured some of the bonds as “Bank Qualified Investments” those sold at an even lower interest rate (2.44 percent) and will save taxpayers approximately $819,000,” Philo explained.
Because of market timing and the financial strength of the district, Fairborn City Schools did not have to purchase bond insurance, which would have raised the credit worthiness of the bonds. This saved approximately another $150,000, officials said.
“We are very pleased with the historic low interest rates that we achieved with this sale and also that we can save Fairborn taxpayers millions of dollars over the next three decades with how this was structured, yet still deliver on our promises of a fantastic new high school complex,” Philo said in the release.
Fairborn voters last November approved a combination bond issue for the new high school, which is scheduled to be completed in August 2023. Plans are currently being finalized and land clearing has begun on the property located adjacent to I-675 off of Commerce Boulevard. The Fairborn School district does have a renewal levy for operating expenses on the May ballot.