The Gwinnett County Board of Education approved the sale of $255 million in general obligation bonds Tuesday to refinance a portion of a 2008 bond issue. The move is expected to save the district $12.5 million in interest payments over the life of the bonds, said Rick Cost, chief financial officer.
“By taking advantage of a lower interest rate, we are able to realize significant savings for the district and for Gwinnett taxpayers," Cost said. "That is more important than ever before, given the current economic situation.”
Gwinnett County Schools, one of four districts in the country with a AAA bond rating, issued the 2008 bonds to pay for capital projects, such as acquiring, building, renovating and equipping school facilities. The average interest rate on the bonds was 4.42 percent. The new interest rate is 3.52 percent.
The bonds refinanced were due to mature between 2014 and 2029.
“While it is always our goal to leverage every opportunity to save or cut costs, it is particularly prudent in these tough times," said Board Chairman Daniel Seckinger.
About the Author
