Board approves refinancing, savings approximately $890,000

At the July 13, 2020 School Board meeting, the School Board ratified the sale of the refinancing of leases related to the 2013 and 2014 gymnasium additions at Lakeaires, Matoska and Willow Lane Elementary Schools.

The true interest cost of the action is 0.969%, which will result in a savings of approximately $890,000 in interest over the life of the repayment schedule.

The action resulted in savings greater than was originally anticipated. “To see bids under 1% and savings of almost $900,000 is really a great result,” said Greg Crowe, one of the representatives with the district’s municipal advisers Ehlers, Inc. 

While it is more typical to receive one to three bids on certificates of participation such as these, the district’s refinancing process received many more bids than the norm. “To see seven bids speaks to where the market is right now, the benefit of a shorter bond, and also to the credit quality of the school district,” said Crowe.

The complete Board packet and video of the meeting can be found on the district’s website.