Debt drops on two Fredericksburg schools
The Virginia Public School Authority refunded $1.7 million to the city of Fredericksburg this month, thus reducing the debt on two schools.
City Manager Bev Cameron told the City Council the good news Tuesday night.
He said the refund from the state agency, which assists localities with school construction financing, will be sent to the city in a lump-sum payment. However, the city will spread the savings over the final 15 years of the debt service payments on the city’s two newest schools.
In 2004, the city issued roughly $50 million in bonds to build Lafayette Upper Elementary School and the new James Monroe High School.
The annual debt service payment was originally $3.4 million.
This is the second time the city received a refund. The last refund was about $850,000. Each time it resulted from interest-rate savings as a result of bond refinancing for lower rates, Cameron said.
He said he learned of the second refund at the start of this year, but had not anticipated it.