The Junction City School Board met on Monday in order to sign closing paperwork to refinance the district’s outstanding bonds.
Superintendent Robby Lowe said this process will lower the interest rate so that the district will see some up front savings.
“The reason that you refund your bonds is that if interest rates go down, that allows you to (use) the savings you would get on the interest rates,” he said. “It’s on the front end. We are refinancing $7,765,000 and in the first year we will save $222,452.”
Over the life of the bond, the district will save closer to $346,665. Lowe said the money the district is saving will go toward maintenance and operation.
The bonds the board decided to refinance were a combination of bonds for the new junior high school, multipurpose room, the gym, the special programs building and several others. Lowe said the bonds have been consolidated over the years with the oldest being from 2004. Others are from 2012 and 2015.
“We took those two bonds and put them together at a lower interest rate to gain a savings on the bond,” he said.
Michael Shine may be reached at 870-862-6611 or [email protected]. Follow him on Twitter and like him on Facebook @MichaelAZShine for updates on Union County school news.