Oak Creek — The School Board halved the interest rates on more than $6 million in debt Monday.
District administrators refinanced a 2004 loan of $6.18 million Monday. That loan was used for upgrades at the high school, and the construction of Deerfield Elementary and East Middle schools.
The loan had an interest rate of 4 percent and the refinance will save the district $572,247 by bringing the rate to 2.05 percent. The savings will be used to further reduce the district's total debt of $43.3 million.
As part of the vote, the board also committed an extra $400,000 to ease the debt.
The district received a Aa2 rating from Moody's Analytics, mainly due to an increasingly healthy fund balance, said Brian Brewer, managing director of Robert W. Baird & Co.
The Moody's report listed the district's large tax base as a financial strength, but noted the district is challenged by a high dependance on state aid and some facilities reaching capacity.
The winning refinancing bidder was BMO Capital Markets out of Chicago. Although School Board members Frank Carini and Kathleen Borchardt both work for BMO, they do not work for that firm and did not abstain from voting for the measure.
The debt is scheduled to be paid off by 2024.
Your link to the biggest stories in the suburbs delivered Thursday mornings.
Enter your e-mail address above and click "Sign Up Now!" to begin receiving your e-mail newsletter Get the Newsletter!
- Chick-fil-A seeks Oak Creek's Drexel Town Square for new restaurant
- Assisted living facility eyes Oak Creek neighborhood for new location
- Oak Creek police officers negotiate 2 percent wage increase
- Oak Creek funds non-union city employee wage increases for first time since 2011
- Azura Memory Care seeks to build 13th Wisconsin location in Oak Creek
- Oak Creek police report: Jan. 22, 2015 issue
- Open gym available Saturday nights at Oak Creek West Middle School
- Correction: Oak Creek has three alderman positions up for re-election
- Drexel Town Square in Oak Creek gets healthy addition: Froedtert facility
- Oak Creek pays its 60th year 'forward' with monthly acts of service