Debt Refunding/Refinancing Policy 210.08a
Series: 200 Administrative Services
Section: Accounting and Auditing
Designated college administrative staff and the college’s financial advisor shall monitor the municipal bond market for opportunities to obtain interest savings by refunding or refinancing outstanding debt. As a general rule, the present value savings of a particular refunding should equal or exceed 3% of the refunded maturities.
However, situations may arise where the college may elect to proceed with a refunding at a lower present value savings. This may happen if the college wanted to restructure the debt, or to make room for future borrowings.
Refinancing or restructuring will not be used to stretch out the original debt.