The Gardner School Board is considering refinancing two series of bonds for a net savings of about $1.5 million.
Eric Hansen, business director, told the board on Sept. 26 that the district’s finance committee met last week to discuss the potential refinancing of bonds from the 2004-A and 2005-A series.
The net savings is estimated to be $929,649 for the 2004 bonds ($1.29 million) and $576,927 for the 2005 bonds ($1.276 million).
“We still have some hefty savings opportunities with the bonds that we have remaining on the books,” Hansen told the board.
Hansen said the main difference between the two bonds is their call dates.
The 2004 bonds are callable on Oct. 1, 2112, and the 2005 bonds are callable on Oct. 1, 2014.
Another consideration is the current state of interest rates.
Hansen said the Federal Reserve recently enacted a plan to shift a substantial amount of its investments from short-term to longer term securities in the interest of driving down long term interest rates.
“In the event this plan is successful, this will only enhance our opportunities for improved savings on the 2005-A bonds as we are still three years from the call date on those bonds,” Hansen said.
The finance committee decided to move forward with a recommendation to the school board to refinance the 2004 bonds.
The committee is also recommending that the board further consider refinancing the 2005 bonds.
The board is expected to take action on a resolution to refund the bonds on Oct. 17.
In other business, the board granted Kent Glaser, athletic director, authority to explore opportunities and potentially enter into an agreement for out-of-state play next year, at no cost to the district.
Glaser said the Gardner Edgerton High School football team may have an opening on next year’s schedule that it may not be able to fill in-state.
He said the district has received an invitation to return to a City of Champions competition, but that is not the only out-of-state option under consideration.
Glaser said final decisions are made on Kansas high school sports schedules on Oct. 5 in Salina.
“What I don’t want to have is to be sitting at that meeting in Salina and not have flexibility,” he said.
School board to consider refinancing existing bonds