(BEDFORD) - North Lawrence school officials are hoping to find savings by redoing a $25,495,000 bond issue.
Mike Lewis, of the Times-Mail, reports that Damian Maggos of Cities Securities Corp. outlined the opportunity during the most recent school board meeting. At the end of his presentation and after some discussion, board members gave him and school administrators permission to proceed.
That bond issue raised money for an addition and renovations to the North Lawrence Career Center, renovations to Bedford North Lawrence High School and refunding of a 1993 bond issue.
The bonds have an average interest rate of 4.74 percent and will mature on Jan. 15, 2026. Bond interest rates are constantly changing. At the time Maggos prepared his presentation, the 2004 bond issue could be refinanced at a rate of 2.64 percent with the same maturity date of Jan. 15, 2026.
Magoos says the school system could save a total of almost $1.6 million - about $113,800 a year - by redoing the bonds. That savings comes after the costs of refinancing.
Board members gave Maggos authority to draw up the necessary paperwork and work with NL Superintendent Dennis Turner.
The idea is to have all of the paperwork in order so the school corporation can take action late this year if the rates are still favorable. If no action is taken, Maggos said, there will be no cost to the corporation.
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