DECATUR — Low interest rates have allowed the Decatur School District to refinance $1.345 million in bonds on its elementary school campus for a savings of $172,542 in interest over the life of the loan.
Dan Lovelady, of First Security Beardsley Public Finance, appeared at a special school board meeting on Feb. 15, so the school board could approve the final closing on the sale of the bonds, which was scheduled for Feb. 22.
Board members Ike Owens, Darleen Holly and Justin Thompson passed a motion approving the sale. Members Aaron Owens and Kevin Smith were not present.
The original bonds were issued in 2006 “for the development of a new cafetorium, elementary campus, middle school campus and physical education facility,” according to an information packet from First Security Beardsley Public Finance.
Refunding the bonds will not lengthen the life of the loan, which is set to be paid off by 2030. The district will save most of the money up front, with a savings of $78,000 this year and $43,452 next year, Lovelady said.
Four companies bid on the bonds, Lovelady told the board. Ross, Sinclaire & Associates submitted the winning bid of 2.41 percent interest. Stephens Inc. submitted the highest bid of 2.57 percent interest.
The final closing and transfer of the bonds was done on Feb. 22 at the offices of Friday, Eldredge & Clark Law Firm.
School News, Pages 11 on 02/29/2012