Oxford Schools taxpayers could benefit from a potential refinancing of the debt the district owes to the School Loan Revolving Fund (SLRF), a move which is expected to save an estimated $700,000 in interest.

School officials are looking into refinancing the SLRF debt, which will increase to an estimated $19.9 million by April 30.

The SLRF is a self-sustaining fund that makes loans to school districts to assist with making debt service payments on state qualified bonds issued under the School Bond Qualification and Loan Program.

Any money repaid by school districts on loans made by the SLRF is deposited back into the fund for future use.

According to Assistant Superintendent of Business and Operations Sam Barna, the district borrows from the SLRF annually to help cover existing bond payments and to keep the current millage rate of 7.9 mills steady for taxpayers.

The SLRF owed by Oxford Community Schools currently carries an interest rate of around 3.17 percent.

“The environment has presented some great opportunities (for the district) and we’ve been able to save millions of dollars for the taxpayers through the refinancings we’ve accomplished recently,” said Jesse Nelson of H.J. Umbaugh and Associates at a March 14 board meeting.

According to Barna, the district has saved around $15 million collectively in interest over the last year and a half through the refunding of bonds.

“We’re seeing interest rates rising, but we want one more opportunity to save the taxpayers money,” Nelson added. “This gives us the ability to achieve (that) without any risk to the district.

School board members are expected to authorize the district administrative staff to proceed with the transaction at the March 28 board meeting.

From there, Nelson told the board that bids would be sent out starting April 11 with the intent to close on a new bond in late May.

If any changes occur in the market or received bids do not meet the required minimum savings figure, the board will still have an opportunity to reverse its decision without any incurred fees.