Taxpayers estimated to pay less on Brunswick City Schools bond issue than anticipated

BRUNSWICK — Brunswick Schools estimates that taxpayers will pay less than anticipated on the bond issue to finish the district's master facilities plan because the district improved its credit rating, and the bonds were sold at a lower interest rate. At the end of June, the district sold the bonds on the open market, Treasurer Mark Pepera said. As a result, Brunswick Schools received about $102 million Wednesday. "We're selling this all at once, and so we're able then to bring in all that money at once and then finance our construction project," he said. "Then, as we levy that tax each year, that tax is sufficient enough to pay the principle payments as well as any interest associated with that respective year." Moody's Investors Service recently reevaluated Brunswick Schools and changed the district's credit rating from A2 to A1, Pepera said. The district estimates that approximately $1.5 million was saved just by raising the credit score. This is because a better rating is considered a less risky investment, and the district can offer investors a lower interest rate. "Because of our improved financial outlook as a result of passing the recent operating levy as well as what we've done to manage our finances since then, they actually did upgrade our credit score," he said. "We were very fortunate there." Also, prior to selling the bonds, Pepera said he estimated the interest would be 5 percent. Instead, the bonds were sold with a 4.81 percent interest rate, which means taxpayers will save even more in interest costs over time. "The day of the sale was a very favorable day for us," he said. "Actually, if we would have picked the next day to sell the bonds, it would cost us about a million dollars more in interest costs." Last year, the Ohio Facilities Construction Commission approved about $42.6 million in funding for the district to build a new Brunswick High School. The $102 million local share for the project was passed in May, which will go to the new high school, athletic fields, improvements to certain elementary schools and more. Brunswick Schools is in the process of selecting an architect for the project, Pepera said. Afterward, a construction manager will be picked, and the vision and design process is likely to start in the fall. Towslee Elementary School and Willetts Middle School are anticipated to be demolished in the late fall or winter, he said. Then, construction should begin next summer. The new Brunswick High School is estimated to be open for the 2026-27 school year. Contact reporter Madisyn Woodring at (330) 721-4049 or mwoodring@medina-gazette.com.