The Washington School Board last Wednesday adopted a resolution to refinance the Series 2003 lease purchase agreement.
Lease purchase agreements have a callable date of 10 years, which makes the district eligible for refinancing on the lease this year or any year following, depending on the interest rate available at the time.
By refinancing the Series 2003, the district will realize savings of $886,141, which equates to a present value savings of 14.766 percent.
When discussions began last fall of refinancing, it was projected the district would save $500,000.
“The board is very pleased with the final projected savings,” said Shelly Kinder, district CFO.
The new lease carries a bond yield of 2.2584 percent. This is the yield for borrowing $5,000,000 for 10 years.
“The district will be able to do this without extending the life of the lease,” Kinder said. “Refinancing at this time is a way of taking advantage of current market conditions. The district will continue to watch current market trends and study the refinancing of the remaining leases and bond issues.”