Milford Schools recently locked in new interest rates to refinance the District’s Series 2015 and 2017 Bonds that will save homeowners and businesses in the District approximately $1,672,509 over the next 11 years. The refunding bonds have the same final maturity as the refunded bonds, maturing on December 1, 2036.
This savings is generated by lowering the interest costs that taxpayers will be paying over the life of the bonds. The District achieved an all-in interest rate of 3.78% over the life of the new loan. These are great results for Milford Schools.
The bond industry standard considers a refinancing feasible when the net present value savings as a percentage of the refunded bond par amount exceeds 3% to 5%. The net present value of the District’s reduction in debt service represents a savings of 5.95%.
Individual taxpayers in the District may not notice the savings as it is accrued across all taxpayers through the year 2036. The Board of Education has been committed to being respectful of the taxpayers and providing great value for the taxes they pay.
Milford’s ability to achieve these savings is directly connected to its strong Aa2 credit rating from Moody’s Investors Service, which is considered “High Quality.” Of the 298 Ohio school districts currently rated by Moody’s, only 52 share this rating, and just 30 rate higher. A school district’s credit rating functions much like a personal credit score—affecting borrowing costs and serving as a point of pride for the community. Milford’s high rating reflects high resident incomes, healthy cash reserves, and a consistent track record of fiscal responsibility, enabling the District to refinance bonds at lower interest rates and capture significant savings for taxpayers.
The Series 2015 and 2017 Bonds were issued to renovate and build the District’s buildings in
accordance with the District’s master facilities plan.
This successful refinancing reflects Milford Schools’ ongoing commitment to sound financial management, ensuring that every dollar is used wisely to benefit students, families, and the entire community.