Bond refinancing equals savings for school district
By refinancing bonds from the 1997 school bond issue, the Basehor-Linwood School District officials hope to save more than $700,000 and lessen the repayment period by one year.
Basehor-Linwood School Board members finalized this week authorizing refinancing of bonds from the last bond issue. In 1997 voters approved a $16.7 million school construction question, which paid for a major overhaul to Basehor-Linwood High School and construction of Glenwood Ridge Elementary School, among other projects.
School district financial advisor John McArthur, a senior vice president with Oppenheimer and Co. Inc., said the school district will save approximately $727,285 by refinancing and that the school district can now pay back the bonds in 19 years instead of 20.
"It also shortens the time taxpayers were committed to the bond issue by a full year so we're very happy about it,"McArthur said.
In 1997 and part of 1998 the school bonds were sold at the lowest interest rates of any bond issue in Kansas. Interest rates were low enough that an opportunity to save by refinancing wasn't available until just recently.
The bonds were refinanced at the lower interest rates earlier this week.
McArthur said school district officials acted quickly to secure savings by refinancing.
"I think this is very good," McArthur said. "It shows the school district is careful with the taxpayers money and they are willing to make the effort to save them some of their tax dollars."