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.

Staff writer Kevin Mertz can be reached at 570-742-9671 or email kevin@standard-journal.com.

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