The Shadow
Alleghany County is one of 28 Virginia school divisions that will realize savings next year from the refinancing of Virginia Public Service Authority bonds.
Approximately $257,861 in savings from the refinancing will be credited to Alleghany County Public Schools and reduce debt service payments in 2010.
Gov. Tim Kaine said $28.7 million in refinancing savings will be distributed to 28 state school divisions and the Literary Fund through one-time credits. The savings were realized when the Virginia Public Service Authority refinanced certain outstanding bonds for interest tate savings.
Savings to the Virginia school divisions will range from $38,287 to $5.01 million. Two other nearby school divisions will also receive credits next year. Roanoke County will receive an $891,013 credit on its debt service payment. Rockbridge County will receive a $591,708 credit.
“I am delighted that we have been able to provide savings for these localities at a time when they are struggling to balance their budgets,” Kaine said. “We will continue to monitor for additional refinancing opportunities provide financial assistance to localities as we continue to deal with this economic crisis.
Localities that will receive savings were participants in seven earlier VPSA bond issues that were refinanced with Series 2009 C refunding bonds. The amount of savings credit for a locality is determined by the locality’s participation in the earlier bond issues – the larger the original bond amount, the greater the savings.
The Literary Fund will also benefit, receiving approximately $4.5 million in savings from local borrowings originally subsidized by the Literary Fund.
