Novi Schools' Bond Refunding Saves Taxpayers Nearly $2 Million

Thanks to a refunding of bonds in January, the Novi Board of Education announced Thursday that the district has saved Novi taxpayers nearly $2 million in future interest payments.

The district refunded $15,520,000 of outstanding bonds that were sold in 2002, which is similar to refinancing a mortgage. By refunding, the district has traded old, higher interest debt with new, cheaper debt.

The savings are even greater than what was originally predicted. In November, the district's bond team estimated the refunding would save $895,000. 

Due to a favorable bond market during the past month, actual savings are $1,878,377, or a nearly 12 percent reduction in overall interest payments for the next nine years.

Taxpayers won't be getting a check in the mail, but they will see a reduction in the debt millage rate that will allow them to keep more money in their pockets. 

"It's a wonderful thing that we did," said President Bruce Bagdady.

The savings comes solely from the debt funds and has no direct impact on the general fund budget. Assistant Superintendent of Business and Operations Barr also pointed out that this was the first chance the district had to refund the bonds.

Personnel recommendations, cameras purchased

The board also approved several personnel recommendations, including the resignation of art teacher Angela Mills for personal reasons and the hiring of Audrey Moiseeff to serve as a counselor at .

The board also approved for the district’s video surveillance system for a cost of $215,727.59. The project will be funded by the 2007 Bond Project budget.

Originally the board had planned to discuss its evaluation of new Superintendent Dr. Steve Matthews, but Bagdady decided to table the discussion until the next meeting since three board members were absent. Bagdady said he plans to meet with Matthews in the meantime to discuss his evaluation in detail.