WAYNESFIELD — Waynesfield-Goshen Board of Education members decided to refinance several school bonds to save district taxpayers thousands of dollars and take advantage of current lending rates.
Board members decided during Monday’s meeting to begin the process to refinance several bonds from 2006 based upon the recommendation of the board’s Finance Committee, which met at 6 p.m. just prior to the board meeting. Preliminary figures are showing the district could save as much as $268,000 by taking advantage of current rates.
“The rates on the bonds right now are currently between 4 and 4.5 percent,” said board member Jeff Schultz, who is a member of the Finance Committee. “The firm who is taking care of it for us said the rates we could refinance at are bouncing around at about 2 and 2.5 percent. We are trying to be responsible and save taxpayers some money.”
The earliest the board could lock in at current rates is in approximately four weeks. The plan would allow the board to back out at no expense if they feel they can wait for better rates when it comes time to lock in.
Board members now must decide if it will choose to go with an accelerated option or a uniform option. With the accelerated option, board members will see a bigger overall savings, but the bulk of the savings would come towards the end of the loan. With the uniform option, the savings are averaged out over the life of the loan, resulting in more savings for taxpayers right away.
However, using the uniform method will result in slightly less overall savings to the district.
“We are moving forward right now and we have time to look at our options,” Schultz said. “Hypothetically, we could wait to see if they were going to go down if we don’t like the lock in rate. I think it is a great move on behalf of the taxpayers.”