Columbus Municipal School District could save an additional $200,000 over the next six years through refinancing a second construction bond.
In a special-called board meeting Tuesday morning, the board amended a contract between the district and two firms working to refinance its bonded debt to include a 2008 bond used for construction of Columbus Middle School. The contract had previously allowed two firms, The Stephens Group and Young Law Group, to only discuss refinancing the debt on a 2009 construction bond.
“They legally could not go through with the discussions of this option without us giving our approval,” board president Jason Spears said.
He said, between the two bonds, the district could save a total of $500,000 in interest payments over the next seven years, but the specific plan for refinancing the 2008 bond has yet to be determined.
“The Stephens Group contacted me Friday, and I’ve also talked to Jim Young, our bond attorney. He said that after they were able to look at options on the 2009 bond, they evaluated the 2008 bond,” Spears said. “With the interest rates market being the way it is, he said it’s giving us a great opportunity, and they felt it would give us even more opportunity as far as placement and underwriting options to consider.”
The 2008 bond is set to mature in 2023, one year before maturity of the 2009 bond. The plan for refinancing the 2009 bond was presented in the district’s proposed 2017-18 budget and will not change with the new option.
According to Spears, the firms will present the new refinancing option to the board during its regularly scheduled meeting July 10.
“We have to wait on this before we can vote on the 2017-18 budget,” said board member Josie Shumake.
The board expects to vote on the FY 2018 budget July 28. Board members previously said that between bond refinancing and cutting 32 paraprofessional positions, the district would not ask for a millage increase for next year.
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