School district saves money, maintains high bond rating

The Cazenovia Central School District recently saved more than $280,000 in future loan payments by refinancing a $3.3 million bond issue at a lower interest rate. The bonds were originally issued in 2004, at an interest rate of 4.125 percent, to pay for several capital improvements, including a new roof at Burton Street Elementary School and a classroom addition at the high school. As part of the process of re-funding the loan at 2.0 percent, the district had its general obligation bond rating reaffirmed as “AA with a stable outlook” by financial ratings service Standard & Poor’s, according to Assistant Superintendent Bill Furlong. The AA rating is the second-highest rating on S&P’s scale and indicates the district is managing its finances in a way that is fiscally responsible. “A rating of AA is very high for Upstate school districts of our size, and we’re very happy this rating has been reaffirmed for Cazenovia,” Mr. Furlong said. “The rating has a direct impact on the interest rate the district pays, and is the result of our strong and stable financial position.”