Page 3 - summer08

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The Woods
3
Each year many homeowners look
into refinancing their homes or their
cars in hopes of getting a better rate
and saving money on interest.
William Woods University recently
did much the same thing and will
save $1.48 million in interest as
a result.
The university issued $8 million worth
of bonds in 1999 to make improvements
to Tucker Dining Hall and several
residence halls, build the Center for
Human Performance, add a chemistry
lab, and complete various other
renovations on its Fulton campus.
The $6.95 million in bonds still
outstanding was recently refinanced,
allowing the university to realize
the interest savings.
William Woods is committed to
operating in the black. Our positive
financial performance, particularly
over the past six years, was a major
contributing factor in our ability to
secure better rates.
The involvement of the Callaway County
Industrial Development Authority (IDA)
helped us secure favorable rates. The
IDA will be the issuer for the bonds,
which will benefit the surrounding
community and make the bonds “bank
qualified.” The “bank qualified” status
provides the university with additional
interest savings.
The seven members of the IDA, all
business leaders, are appointed by
the Callaway County Commission as
a public corporation authorized and
empowered to issue revenue bonds to
make construction loans or refinance
outstanding obligations.
The IDA serves as an intermediary
between the borrower and the lender,
resulting in better rates for the borrower.
The fees paid by the borrower for this
service are shared by the Kingdom
of Callaway Chamber of Commerce
and the Fulton Area Development
Corporation.
We are committed to making decisions
in the best fiscal interest of the univer-
sity. The bond refinancing is part of the
university's fiscal management plan and
eliminates the final four years of
payments, so our bonds will fully
mature in 2025 instead of 2029.
The university will save the interest
cost, which contributes to our overall
fiscal health over time.
Although the members of the
executive cabinet joke about the
'next' administration enjoying the
benefits of the financial savvy of
the current administration, this is
only one step in our plans. Many
additional projects are on the
drawing board; I will be sharing
them with you in the near future.
President’s
Perspective
WWU Shows Financial Savvy; Local Community Benefts
Jahnae H. Barnett, Ph.D.