The Fort Calhoun Group Faculties Board of Training voted to refinance its three of its faculty bonds, doubtlessly saving the district greater than $500,000.
Andy Forney of D.A. Davidson introduced the plans, which make the most of low rates of interest, to board throughout a particular assembly Aug. 24.
A 2015 bond with an rate of interest of two.eight% might be refinanced with a 1.9% rate of interest, saving the district $182,000.
The bonds collection 2016 and 2017 will not be callable till 2021 and 2022, respectively.
“Nonetheless, with rates of interest so low, we are able to do what’s known as a taxable advance refunding,” Forney stated.
That transfer would come with promoting a set of bonds and placing the funds in an escrow account to repay the long run bonds.
“This has turn out to be extraordinarily frequent,” Forney stated citing a number of colleges which have lately performed the identical.
The present charges of these bonds can also be at 2.eight% and could be diminished to 1.9%, saving the district $379,000.
“This one does look good. If rates of interest have been to remain at these absolute lows till subsequent yr, we may most likely save just a little bit extra by ready,” Forney stated. “It makes me just a little bit nervous with the election arising. The volatility that lots of people anticipate, that will be some huge cash to attend on.”
If the board waited, they might save an extra $244,000. Nonetheless, Forney stated it wasn’t a assure.
Board member Kelli Shaner requested enterprise supervisor David Genoways if he thought refinancing all three collection of bonds was the appropriate transfer.
“Anytime it can save you the taxpayers primarily half 1,000,000 plus dollars, it is sensible to do,” Genoways stated. “That is simply my opinion.”
Board member Amanda Schrum wished the district to attend to refinance the 2016 and 2017 bonds.
“I like the concept of ready a month or two to see what occurs,” she stated.
The board 6-Zero to refinance the 2015 bond and 5-1 to refinance the 2016 and 2017 bonds. Schrum voted no.