BY NANCY GAGNET | MIRROR REPORTER — Maumee City Schools received an AA- bond rating from the Standard & Poor’s credit rating agency.
The score has allowed the Maumee school district to sell debt at a lower interest rate, which will put a few dollars back into the pockets of residents who pay real estate taxes in the district, said district treasurer Paul Brotzki.
The refunding initiative, which was finalized on July 15, will save taxpayers in the Maumee school district $993,511 in interest payments over the remaining life of the bonds. The district refunded $8.9 million of outstanding bonds at a lower interest rate to obtain the savings, which means that the owner of a $100,000 house can expect to save approximately $80.00 over nine years. The savings will begin next year, Brotzki added.
“We will pay less in interest, which means we are saving the district overall in interest earnings,” he said. “I like to compare it to a mortgage on a house, but instead of going to a bank to get a loan, we (the school district) sell bonds. This enables us to have better interest rates. When we sell our bonds, we can do it cheaper.”
According to Standard & Poor’s, the AA- rating is given when there is a very strong ability to meet financial obligations. The highest credit rating is AAA.