From the Greencastle Banner-Graphic:
The South Putnam School Board is well on its way to being ready for the upcoming school year, which begins next month.
...
Randy Ruhl of City Securities presented the board with the status of the corporations current bonds.
"This is something we've been watching for some time," said Ruhl. "We have looked at all the bond issues to see which are the best candidates and where interest rates are today."
Currently, the school corporation five obligations that are outstanding, one being pension bonds.
Ruhl focused on the bonds that were done in 2003, which were listed with a purpose of Fillmore Elementary. Much of the money used was for the addition added to the school.
Just over $7.6 million is outstanding with the current bonds at Fillmore Elementary.
The bonds run through tax collection year 2021, therefore there are only nine additional years left for the repayment of those bonds.
"We don't see a lot changing, but you never know what might happen with an election this fall," explained Ruhl. "Rates are as low as I've ever seen them."
The board made the decision to refinance as long as they will receive a minimum net savings of at least $450,000.
"Our incentive is to generate as much savings as we can," said Ruhl.
Although, the pension bonds are important Ruhl stated that at this time there is no real opportunity today, but there may be in a couple of years.
Ruhl plans on coming back in a couple years to discuss refinancing the pension bonds, which are unable to be redeemed or paid back earlier than 2015.
By refinancing the 2003 bonds there will be around $70,000 a year of reduction in taxes that will be collected. Over $600,000 of taxes will be reduced as a result of this refinancing over nine years.
Ruhl will begin the process of refinancing the bonds, which will take around 30 days to complete.
...
http://www.bannergraphic.com/story/1871701.html
