Grain Valley R-V board authorizes parameters to refinance 2021 bonds, cites roughly $333,000 projected savings

The Grain Valley R‑V Board of Education voted to approve a parameters resolution authorizing district officials and LJ Hart & Company to pursue a refunding of the district’s 2021 general obligation bonds.

LJ Hart representatives described an opportunity to refinance bonds that are callable March 1, 2026, and proposed issuing roughly $6.375 million in refunding bonds at an estimated 4 percent coupon (yield quoted around 2.9 percent). A district staff presenter summarized the financial effect: accelerating some principal payments would shorten the financing by about one year and produce a projected net present value savings of roughly $333,000, or 3.72 percent of the refunded principal.

Why it matters: refinancing callable municipal bonds can reduce the district’s long-term interest expense and create debt‑service capacity for future projects. LJ Hart also reviewed the district’s assessed valuation and legal bonding capacity and presented a sample repayment plan designed to avoid a tax-rate increase while funding prioritized projects.

The board’s resolution includes a yield ceiling of 3.75 percent; if market conditions push the yield above that threshold, the administration must return to the full board. After questions from trustees about timing and assumptions, the board approved the parameters resolution by voice vote.

Quotes and attribution: A representative from LJ Hart explained the timetable, saying, “We’re within the 90‑day window, so we can lock in a refinancing.” District staff noted the plan would shorten the remaining amortization schedule and produce the stated present‑value savings.

Next steps: Staff and the district’s financial advisor will monitor market conditions, solicit investor interest, and, if market terms fit within the board’s parameters, lock in the financing under the authority granted by the resolution.