The Poland Board of Education took action at its Board meeting on Monday, August 26, 2019, to refund/refinance the district’s current outstanding debt. The debt will be consolidated into one loan instead of three separate loans. The interest rate on the new lease is lower than the current three loans.
The year-long refunding program was led by Treasurer Janet Muntean, who worked directly with different depositories and explored cost-saving measures. Ultimately based on federal and state laws related to tax codes and the complexities of the current loan structures, the Board of Education decided to work with Huntington Bank Public Financing.
In addition, the restructuring will allow the Board of Education to borrow additional funds for specific capital project needs in the districts. The total annual payment will also be reduced for the first four years of the ten-year note. The long term action plan would be to pay the new loan off in five to seven years, using proceeds of any additional funds from the sale of current district property.
The Board of Education feels that utilizing these monies to capitalize the Permanent Improvement Fund will create a mechanism for facility repairs and capital improvements.