The Scottsbluff Public Schools Board of Education approved a resolution this week allowing the refunding and refinancing of general obligation bonds for the Middle School, a move that will save the district thousands of dollars.
District Chief Financial Officer Lavon Hood tells KNEB News $800,000 will be used from the district’s bond reserve fund to help lower the interest rate by more than half a point, down to around 2.2 percent. “That gives us an approximate gross savings of $1.1 million, and it also allows us to pay of those bonds about two years early”, says Hood. “So, when you aren’t having to pay all that principal for all that time, you get some interest savings.”
The net savings over the life of the new bonds would be about $336,000 even though the payments on the bonds will stay the same.
Hood tells us that, along with DA Davidson, she’s been keeping a close eye on interest rates for an opportunity to prepay some of the bond principal and save money for the district.