Debt refinancing saves Westlake taxpayers $571,000

The Westlake City School District went to market on Oct. 11 for the refunding of its 2003 series bonds used to finance the Performing Arts Center project.

The refunding saved the taxpayers of Westlake more than $571,000 in foregone interest costs. These savings will be reflected in lower property tax rates to Westlake residents over the life of the bond issue.

A breakdown of the sale:

• The bonds will be delivered on Oct. 25
• The refunding resulted in an interest cost of 3.17% (inclusive of all fees)
• The net present value savings to the taxpayers was 7.05% and exceeded the minimum threshold to proceed as established by the Board of Education as well as nationally recognized best practices for this type of activity
• The refunding did not extend the original maturity date of 2027

“The results were better than expected and can be directly attributed to the district’s excellent credit rating and sound financial status as recognized recently by Moody’s Investors Service and Standard & Poor’s Ratings Services,” said CFO/Treasurer Mark C. Pepera.