District set to save money

District set to save $1.9 million by refinancing Certificate of Participation
Posted on 01/16/2019
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The Mehlville Board of Education approved the refinancing of the district’s Series 2009 Certificate of Participation (COP) during their December meeting. By refinancing this COP, the district will save about $1,876,000.

The refinance will replace the 2009 COP, which has a 6.85 percent interest rate, with the 2019 COP with a 3 percent interest rate and an accelerated payment schedule. All of Mehlville School District’s COPs are scheduled to be paid off by 2022.

Certificates of Participation are alternatives to municipal bonds that are used by school districts to make improvements to facilities and infrastructure.

“This is one of 11 refinances that we have completed since 2010,” said Marshall Crutcher, chief financial officer for Mehlville School District. “The total savings for all of these refinances is $11.2 million. Ensuring that we take advantage of more favorable interest rates for our COPs is just one of the ways we are being responsible stewards of taxpayer funds.”

Mehlville School District’s bond rating has been upgraded from AA- to AA status. This bond rating indicates that Mehlville School District has a very strong, and improving, creditworthiness relative to other U.S. municipal or tax-exempt issuers or issues.

“This higher bond rating will be helpful in securing the best financing for any future bond issues,” Crutcher said.

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