A resolution passed by the Carson City School Board of Trustees on Tuesday night could save taxpayers up to $300,000.
"Interest rates are such that we think we can refinance some of the 2000 and 2001 bonds for interest savings without extending the term of the bonds," said Marty Johnson, financial advisor on bond issues to the Carson City School District.
Bond interest rates have been in a state of fluctuation recently. By passing the resolution the board gives Bob Anderson, financial director for the school district, permission to lock in the best interest rate.
"If you remember when we sold the bonds, we weren't expecting rates to get any lower and they did," Johnson said. "We don't expect rates to get any lower now."
By locking in a lower rate, Anderson believes taxpayers could be saved up to three percent of $10 million, which results in $300,000 in savings.
He does not want to refinance any portion greater than $10 million of the 2000 and 2001 bonds because federal regulations kick into play for anything over that amount.
"We don't want to go over $10 million," Anderson said. "There's some regulations about refinancing over $10 million."
The board initially approved the 20-year bonds to pay for rehabilitation and repairs to district schools. Fritsch, Empire and Seeliger elementary schools as well as Eagle Valley and Carson middle schools, Carson High and the district's Department of Transportation received improvements from the bond funding.
"Included in those projects were parking lot improvements, playground improvements and bathroom improvements at the sites," said Mike Mitchell, director of school operations.
Updates made to electrical and plumbing systems at the schools came from the bond funding.
All the bond projects from the 2000 and 2001 bonds have been completed.
"This is a simple refinancing, like on a home loan," Anderson said. "It's nothing outstanding, we did one last year too."
n Contact reporter Maggie O'Neill at moneill@nevadaappeal.com or 881-1219.
