Columbia Public Schools saves $7 million by restructuring debt

9 months 3 weeks 3 days ago Wednesday, October 25 2017 Oct 25, 2017 Wednesday, October 25, 2017 3:18:00 PM CDT October 25, 2017 in News
By: Kevin Levine, KOMU 8 Reporter
loading

COLUMBIA - When you refinance your home, you try to obtain a lower interest rate so you don't owe as much interest over the course of the loan. This is essentially what Columbia Public Schools did when it restructured its debt.

When CPS accrues debt to help pay for additional projects or other expenses, it has had an interest rate on which it pays back the loan. In this latest deal, it refinanced its loan to get a lower interest rate. Over the next 14 years, this saves CPS more than $7 million.

"The District is committed to maintaining the current tax rate for debt service, which funds the principal and interest payments for capital improvement expenditures," CPS Chief Financial Officer Anna Munson said in an email.  "This refunding will allow the district an opportunity to continue that commitment for future projects."

While the deal saves CPS more than $7 million, don't expect any extravagant projects anytime soon, as the majority of the savings won't be realized until 2031.

"I think we'll see as we get there," Board of Education Finance Chair Paul Cushing said when asked what the plan is for the $7 million. "Obviously the savings isn't realized tomorrow, and so over the course of the years, it's a small savings during many of those years, but it is something, and over the long term it is important to do the best we can to not send too much debt down the road."

CPS began looking at a deal to restructure its debt when Munson joined CPS in July. 

"It's a double edged sword with this," Cushing said. "We don't want to say we've saved seven million bucks and then everybody thinks we have money to burn, that's not the case because it's over such a long period of time. But it's important that our tax payers know that we are working very hard to minimize costs to provide as much as we can for the kids." 

Cushing says the deal to restructure was completed after the board meeting on October 9th. 

To look at how much CPS will save year by year, click on this link.

More News

Grid
List
(CNN) -- Federal investigators examining whether President Donald Trump's former lawyer Michael Cohen committed bank and tax fraud are looking... More >>
37 minutes ago Sunday, August 19 2018 Aug 19, 2018 Sunday, August 19, 2018 8:01:59 PM CDT August 19, 2018 in News
Indiana ( WRTV ) -- Hundreds of students walked out of the Andy Gross show Saturday night at Purdue University... More >>
1 hour ago Sunday, August 19 2018 Aug 19, 2018 Sunday, August 19, 2018 7:30:19 PM CDT August 19, 2018 in News
CAPE GIRARDEAU (AP) — Students in one Southeast Missouri State University dorm who don't want to leave their dogs or... More >>
5 hours ago Sunday, August 19 2018 Aug 19, 2018 Sunday, August 19, 2018 3:09:00 PM CDT August 19, 2018 in News
NORTH KANSAS CITY (AP) — A Kansas City-area school district that garnered national attention when a transgender student was crowned... More >>
5 hours ago Sunday, August 19 2018 Aug 19, 2018 Sunday, August 19, 2018 2:47:00 PM CDT August 19, 2018 in News
KANSAS CITY, Mo. (AP) — Kansas and Missouri officials hope to attract the nearly 700 well-paying USDA jobs that are... More >>
8 hours ago Sunday, August 19 2018 Aug 19, 2018 Sunday, August 19, 2018 12:17:10 PM CDT August 19, 2018 in News
ST. LOUIS (AP) — Prosecutors say they will seek the death penalty for a St. Louis man charged with killing... More >>
8 hours ago Sunday, August 19 2018 Aug 19, 2018 Sunday, August 19, 2018 11:50:00 AM CDT August 19, 2018 in News
ST. LOUIS (AP) — Parts of Missouri are so dry that corn crops are suffering and hay for cattle is... More >>
8 hours ago Sunday, August 19 2018 Aug 19, 2018 Sunday, August 19, 2018 11:44:16 AM CDT August 19, 2018 in News
SEDALIA (AP) — Officials say a worker injured near Sedalia in west-central Missouri has died. The Sedalia Democrat reports... More >>
11 hours ago Sunday, August 19 2018 Aug 19, 2018 Sunday, August 19, 2018 9:01:36 AM CDT August 19, 2018 in News
COLUMBIA - The University of Missouri Police Department is investigating a sex offense report on Saturday. According to a... More >>
21 hours ago Saturday, August 18 2018 Aug 18, 2018 Saturday, August 18, 2018 11:00:00 PM CDT August 18, 2018 in News
MILLER COUNTY - The Miller County Sheriff's Office reported that suspected shooter Devin Mckie is in custody after being arrested... More >>
22 hours ago Saturday, August 18 2018 Aug 18, 2018 Saturday, August 18, 2018 10:36:00 PM CDT August 18, 2018 in News
BOONVILLE – About 100 people rode their bikes early Saturday to help raise funds for the 43rd annual Missouri River... More >>
1 day ago Saturday, August 18 2018 Aug 18, 2018 Saturday, August 18, 2018 2:23:00 PM CDT August 18, 2018 in News
PLATTE CITY, Mo. (AP) — Sheriff's deputies in northwestern Missouri's Platte County say they've seized more than 200 pounds of... More >>
1 day ago Saturday, August 18 2018 Aug 18, 2018 Saturday, August 18, 2018 1:48:56 PM CDT August 18, 2018 in News
BLACK JACK (AP) — A baby bobcat found in eastern Missouri and being nursed back to health might be mistaken... More >>
1 day ago Saturday, August 18 2018 Aug 18, 2018 Saturday, August 18, 2018 1:42:55 PM CDT August 18, 2018 in News
ST. LOUIS (AP) — Funding cuts to in-home care for the disabled could force some Missouri residents into nursing homes,... More >>
1 day ago Saturday, August 18 2018 Aug 18, 2018 Saturday, August 18, 2018 1:34:39 PM CDT August 18, 2018 in News
COLUMBIA - The North America Diving Dogs dock diving competition was in its second of three days Saturday at the... More >>
1 day ago Saturday, August 18 2018 Aug 18, 2018 Saturday, August 18, 2018 1:01:00 PM CDT August 18, 2018 in News
COLUMBIA - The Columbia Police Department is investigating an attempted burglary of an off-campus sorority house near MU. In... More >>
1 day ago Saturday, August 18 2018 Aug 18, 2018 Saturday, August 18, 2018 11:01:00 AM CDT August 18, 2018 in News
MOBERLY - The Moberly Police Department is currently investigating an armed robbery of Break Time North, 1210 East US 24.... More >>
1 day ago Saturday, August 18 2018 Aug 18, 2018 Saturday, August 18, 2018 10:18:00 AM CDT August 18, 2018 in News
(CNN) -- New court documents filed in the case of a Colorado man suspected of killing his pregnant wife and... More >>
1 day ago Saturday, August 18 2018 Aug 18, 2018 Saturday, August 18, 2018 12:09:31 AM CDT August 18, 2018 in News
Columbia, MO
Broken Clouds 77°
9pm 70°
10pm 70°
11pm 75°
12am 75°