County Refinances School Construction Loans

Johnston County Commissioners will save about $1,050,000 in taxpayers money by refinancing two loans at a lower interest rate.

In 2006, the county refinanced a loan originally issued in 1999 for construction of Riverwood Elementary School, a portion of East Clayton Elementary School and a portion of the renovation of the Heritage Center building in Smithfield.

In 2010, the county refinanced a loan first issued in 2008 to pay for a portion of the construction cost at Cleveland High School.  Altogether, $19,070,000 is left owing on the loans.

This week, commissioners agreed to refinance both loans at a lower interest rate of 2.47 percent. The county will keep the principal payment unchanged but will retire the debt sooner and at a cost savings of just over $1 million.