The Washington School District is capitalizing on low interest rates to save about $1.1 million.
The school board Wednesday night unanimously approved a resolution authorizing the issuance of general obligation refunding bonds of the 2010 and 2013 bond issues.
The 2010 bond issue was used for HVAC upgrades at four elementary buildings and Washington High School, intercom upgrades throughout, as well as targeted roof and window replacement and repairs totalling about $15 million.
The 2013 bond issue was for wireless infrastructure, the Early Childhood Center, HVAC upgrades at Augusta, and the classroom addition at Marthasville totalling about $9 million.
Joe Kinder with George K. Baum, the district’s bond counsel, was at the meeting Wednesday to share information on the refinancing.
Kinder said the timeliness of this endeavor is critical because new tax legislation at the federal level, if finalized and passed, would prohibit school districts and others from utilizing this same cost saving measure in the future.
He said his company is handling numerous refinancing issues due to the pending legislation.
“The advanced refunding allows us to refinance at a lower rate and save $1.1 million without lengthening our term,” said Superintendent Dr. Lori VanLeer.
Board member John Freitag said anytime the district can save taxpayer money, it’s a good thing.
Bond refunding is the concept of paying off existing debt with bonds at lower interest rates that have a lower net cost to the issuer of the bonds.
The resolution and agreement approved, allows George K. Baum to price the bonds without the need for an additional board meeting.