Bond refinance to net borough $1.2 million

MAT-SU -- Financial diligence on behalf of the Mat-Su Borough's finance department has resulted in a sizable savings for Mat-Su residents, according to information from Tammy Clayton, the borough's finance director.

Clayton said she and her staff regularly examine bond rates to see whether lower rates would apply to bonds currently held by the Mat-Su Borough, and found a lower interest rate could be used for more than $44 million in school bonds issued between 1994 and 2001.

Taking into account the $600,000 in financing fees, Clayton said refinancing will save the borough $1.2 million over the life of the bonds.

The bonds cover a range of projects approved by voters over the past decade, Clayton said, including Teeland, Larson and Meadow Lakes elementary schools, the recent remodel of Wasilla High School and the remodel of Talkeetna Elementary, along with several other projects. Refinancing the bonds, Clayton said, won't have any effect on the projects.

It's similar to refinancing a house, Clayton said -- and it can be done again if the interest rate drops further, although that would mean paying the refinancing costs again. The bond refinance, Clayton said, included an important provision that will allow the borough to further reduce its interest rate should the rate drop lower.

Clayton said about one-third of the bonded debt held by the borough was refinanced through this refinancing project, and she and her staff will continue looking for options to refinance the other bonds held by the borough.

Contact Rindi White at rindi.white@frontiersman.com.