District authorizes refinancing plan to capture roughly $662,000 in net savings
Summary
The board authorized staff to proceed with refunding options combining capital outlay certificates and certain bonds; staff said the two proposals together would net about $662,248 in savings after fees and would allow levy reductions.
The Tea Area School District board authorized staff to proceed with refinancing—or refunding—several existing capital outlay certificates and general obligation bonds after the district’s fiscal adviser presented two options estimated to reduce future debt service.
The first proposal would combine 2014, 2015 and 2018 capital outlay certificates into one refunding with an estimated net savings of $432,318.75 over the remaining life of those instruments (through 2039). The second proposal would combine 2015 and 2019 general obligation bonds into a refunding with estimated net savings of $229,930 over the remaining life. Speaker 3 told the board the quoted savings include issuance and advisor fees, and that the combined net savings would be about $662,248.
After a motion and voice vote, the board approved proceeding with the refunding plans; Speaker 3 said staff expects to bring a formal resolution to the board when the details are finalized.
Board discussion noted the refunding would not extend the life of the obligations and is intended to lower future payments and potentially decrease the levy for taxpayers.
