Parkland School Board to Refinance Bond and Save at Least $500,000
Parkland's Director of Business Administration compares it to refinancing the mortgage on a home in this "low interest rate environment."
The Parkland School Board voted Tuesday to refinance its 2007 series bonds in hopes of saving the district at least $500,000.
Director of Business Administration John Vignone told the board the district wants to take advantage of a “low interest rate environment, similar to a mortgage refinancing from higher rates to lower rates.”
Vignone said the district monitors its debt portfolio carefully and “market conditions change rapidly, not only from day to day but also hour to hour.”
He said that a large chunk of the savings, possibly $300,000, would be recognized during the 2013-2014 fiscal year, with the remainder spread out over upcoming years.
The school board voted 8-0 to approve the refinancing of the 2007 series bonds. Board member Barry Long was absent.
This is not the first time Parkland has saved money by refinancing bonds. For example, in September 2011, the district announced that it would save $1.2 million over the next two years from the refinancing of 2001 bonds.