Fleetwood School Board unanimously approved a resolution for bond issue refinancing Nov. 18, in the hopes of bringing savings to the district.
The discussion focused on coming to a decision about a resolution for refinancing the district’s 2009 bond issue of $13.5 million.
In September and October, the board was presented with the possibility and chose to hold off, pending research into savings projections.
Discussion continued this month and included the school’s bond consultant, Ken Phillips, as well as John Cox, both representatives of RBC Capital in Lancaster.
Phillips and Cox presented savings approximations to the board. Assuming the resolution would be approved, the numbers represent what the district would be saving every six-month period: $750,000 by June 2015, $825,000 by December 2015, $1,025,000 by June 2016 and $1.1 million by December 2016.
These numbers are based upon current market conditions.
“We won’t have a right answer until Dec. 1. 2016,” said Phillips. “These numbers are what you potentially have the ability to save going forward.”
The approval of the resolution will authorize a new series of bonds in the maximum amount of $16,705,000.
Upon approval, the district will not take on any additional debt beyond the cost of issuance.
“There may be a little additional principle to pay cost of issuance,” said Cox. “The interest rates on the new bonds will be lower, so the overall debt will be less to the school.”
The board unanimously passed two motions, the first of which set a parameter of $850,000 for the resolution, in order to give bond council authority to go ahead with the process.
The second motion approved the resolution itself, and the district will move forward with refinancing the bond issue.
Other objectives on the agenda included proposed warranty extensions for the Willow Creek Elementary project, and a payment of the remaining balance of $37,444.41 to Wholsen Construction, who oversaw the development of the school.
Several leaks were recently discovered in the roof, as well as other inefficiencies that need to be addressed.
A motion was carried to accept the proposal, and the board moved through the rest of the agenda quickly.
Board policy, personnel, and business and finance motions were voted on unanimously.
In a new development, the district has also agreed to host a high school exchange student for the 2015-16 year.
The next meeting will take place on Dec. 15 at 7 p.m. in the Fleetwood Senior High School Board Room.