MILTON — With interest rates remaining low, the Milton Area School District expects to save $5.6 million in interest on $30 million it intends to borrow over a four-year period.
Business Administrator Derrek Fink explained both during and following Tuesday’s school board meeting the district learned recently it has secured a 2% interest rate for a $9.5 million borrowing plan which went out for bid earlier in the summer.
With the funds, Fink said the district will be refinancing a $3 million 2014 borrowing, resulting in saving $212,000 in interest.
The remainder of the money will be placed in the district’s construction fund.
Over the 30-year borrowing period on the $9.5 million, Fink said the district will recognize $2.7 million in savings over initial projections of interest rates.
Previously, Fink said the $9.5 million borrowing was part of a $30 million borrowing plan outlined in 2019. By the end of this year, Fink said the district intends to place bids for a borrowing of $8.325 million as part of the process.
“Overall, from our initial 2019 projections, we now project to spend about $5.6 million less in interest for the full $30 million,” Fink said.
Currently, the district has a $14.1 million project ongoing to renovate the high school’s athletic facility, and construct an 18,495-square-foot wellness facility at the complex.
A $4.9 million project to upgrade the HVAC system at the middle and high school is also ongoing.
Renovation work is also expected to take place at Baugher Elementary School.