The board voted 4-0 to pass a bond resolution with board member Josh Petree absent. Out of five companies, Raymond James and Associates offered the lowest bid, about 2.12%, according to Kevin Faught, senior vice president of public finance for Stephens Inc., the bond counsel.
Faught said the reduction in interest rates from the issuance of the refunding bonds will result in a net savings of $117,269. Of that amount, $86,725 in savings will be realized in 2024, Faught said.
According to a chart provided by Faught, interest rates have risen from 2.05% on Dec. 2 to 2.54% on Feb. 17.
Faught said interest rates were lower on Feb. 28 due to the Russian invasion of Ukraine, but he was not sure the School District would have received a better deal.
"I'm not sure if it would have made a difference because the market is really bouncing around right now," Faught said.
Regardless of the situation in Ukraine, none of the fees will make a dent in the savings, Faught said.
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