MCS bond refinancing saves taxpayers $273,064

submitted by Nick Steinmetz, Superintendent, Manchester Community Schools

In 2009, the Manchester voters passed a School Building and Sites Bond. At the time of its issuance, interest rates ranged from 4.00% – 5.00%. During the November 19, 2018 Board of Education meeting, the Board approved a motion for MCS Business Manager Kendra Leib and myself, to work with H.J. Umbaugh & Associates to re-fund the 2009 bond in an effort secure a lower repayment interest rate. “We at Umbaugh could not be happier with the result and are honored to be a part of this project,” stated Jesse Nelson, CPA, H.J. Umbaugh & Associates partner.

The 2019 Bonds were issued to refinance the outstanding 2009 School Building and Site Bonds. As a district, we are very pleased with the result and excited to share the information with the community. As a part of the refunding bonds process, the Manchester Community Schools bond rating was reviewed by Moody’s Investors Service. The District secured the strong bond rating of “A1.” This is a compliment to the District’s financial/management practices. The 2019 Bonds also received the bond rating of “Aa1” for participation in the School Bond Qualification and Loan Program.

Competition for the 2019 Bonds was strong as a total of 9 bids were received. United Bankers’ Bank was the winner with a 10 year True Interest Cost (“TIC”) of 2.308420%. This drop in interest rate will result in $273,064 in savings, directly to taxpayers, over the repayment of the bond. MCS Board of Education member, Mike Austin, stated, “while the district does not see any direct financial gains by refinancing the 2009 building and sites bond, it is important for us, as a Board of Education, to continually look for opportunities to be good fiscal stewards of the funding provided by the community.”

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by Sara Swanson

Sara Swanson is an editor, writer and founder of the Manchester Mirror.