Dearest reader,
A reader brought Lady B a breadcrumb about the Energy Conservation Improvement Bonds issued by Saginaw Township Community Schools in 2026.
So Lady B went looking for the receipts. 🧾
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Saginaw Township Community Schools borrowed $4.02 million for energy conservation improvements.
The bonds carry a 4.25% interest rate and aren't scheduled to be paid off until 2046.
And the principal is heavily back-loaded.
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Only about $1.115 million of principal is scheduled to be repaid from 2028 through 2037.
That leaves $2.905 million. More than 72% of the original principal, to be repaid from 2038 through 2046.
And while that principal remains outstanding, interest continues to accrue.
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💰 $4,020,000 borrowed
💰 Approximately $2,391,241 in interest
💰 Approximately $6,411,241 in total principal and interest
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Then there are the costs of issuing the bonds:
📌 Underwriter's discount: $82,770.77
📌 Costs of issuance: $68,500
📌 Total: approximately $151,271
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And that brings Lady B back to the reader's original breadcrumb.
Arrowwood Elementary has experienced documented flooding and drainage problems for years.
So the reader asked a pretty good question:
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❓ If Saginaw Township Community Schools was willing to take on long-term debt for energy conservation improvements, why wasn't a Limited Tax General Obligation Bond, like St. Johns Public Schools used for its Early Learning Center, considered to permanently address the longstanding issues at Arrowwood Elementary?
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Was that option ever considered?
Because borrowing $4.02 million and ultimately paying approximately $2.39 million in interest tells us Saginaw Township Community Schools was willing to use long-term financing.
The question is which problems were considered worth financing.
With receipts and respect. 🪶