By Sophie Pappas
Zionsville Community Schools Supt. Scott Robison along with Chief Financial Officer Mike Shafer announced at the Sept. 8 school board meeting that the schools have saved more than $13.1 million through bond refinancing this year.
“This is some unbelievably outstanding news,” Robison said. “Strategic planning we began in 2006 planned this refunding and avoided new construction debt for nine years. This set up the work by an impressive team of Board of Trustees, financial, and legal experts.”
ZCS debt for construction grew significantly during very rapid enrollment growth in the late 1990s and early 2000s.
“Board members serving back then had to build to accommodate new students.” Robison said. “Though growth has continued, the pace has been slower than before. We have utilized the 2005 series bonds very carefully to increase capacity and forestall new construction debt for as long as possible.”
Shafer worked with district controller Becki Edlin, CPA, and two accountants serving on the school board, Shari Richey and Joe Stein, to assemble a financial and legal team that worked toward the refunding results for more than a year.
“This is indeed exciting,” Shafer said. “The bonds that were refinanced were initially from 2005. We were very fortunate in achieving what might be considered the exact opposite of the perfect storm. It might be deemed a good weather day.”
What $13.1 million saved really means for Zionsville residents is that over the next several years there will be a lower tax rate for the taxpayers. The district capitalized on exceptional bond rates and other favorable market conditions to accelerate and optimize this refinancing.
Shafer said that ZCS is “very far away from having solid numbers… but we are hopeful that this will make a tangible difference for us.”
For 2015 debt service rate will be between five and seven cents lower. In 2016, this will be nine to 11 cents off the tax rate.
“So we are very pleased with this,” Shafer said. “This is a direct reduction in the tax rate for the school corporation.”
Consultants from KeyBanc Capital Markets Inc. spoke at the meeting.
Thomas Coverick addressed the board and said: “We’re going to talk a little bit about saving,” noting that the $13.1 million is actually “an impressive $14.595 million in gross savings.”
School Board President Jim Longest was pleased with the results and said: “Fiscal stewardship has been well served once again by board members and professional staff who planned well and implemented flawlessly. Thanks to Shari and Joe for use of their areas of expertise to help all taxpayers. Thanks to Mike, Becki, and the entire team of financial and legal professionals who worked together so well in striking the right approach with perfect market timing.”
