The Dayton Metro Library has issued $41.325 million of refinanced Bonds. This is the second refinancing of the $187 million of original bonds that Montgomery County voters authorized in 2012 as part of the Libraries For A Smarter Future system-wide facilities improvement plan. In 2019, the Library sold $88.7 million in bonds, saving $12.36 million; the 2021 bonds have saved taxpayers an additional $6.9 million in debt service costs.
In total, taxpayers in the Dayton Metro Library service area are saving $19.26 million in overall debt service costs over the life of the bonds, which expire in 2038. The Refinancing is being facilitated by Stifel Investment Banking.
Political subdivisions, such as the Library have the ability to refinance outstanding debt. “When we refinance,” states Chrissy Sanders, DMLs Chief Financial Officer, “the taxpayers are the direct beneficiaries.” While property taxes help pay back the bonds, by refinancing, the Library is able to help lower taxes for homeowners who live in Montgomery County. “Rates are historically low, so it was a great time to refinance.” The interest rate on the 2021 Bonds is 1.45% compared to the average rate on the old bonds, which was 3.71%.
“Saving this amount for taxpayers is a key part of Dayton Metro Library’s five-year strategic plan, and it aligns with our priority to build trust in the community while being good stewards of taxpayers’ funds,” adds Dayton Metro Library Executive Director Jeffrey Trzeciak. “We aim to enhance the community’s quality of life, strengthen financial assets, and build equity in the community.”