Mt. Pleasant school board discusses refinancing bond issue
The Mt. Pleasant Area school board may be able to save nearly half a million dollars if it decides to refinance a 2008 bond issue.
Bob Aumer with Janney Montgomery told directors on Tuesday that interest rates keep dropping and encouraged the board to consider refinancing.
“Your series 2008 bonds are callable next July from the current bond holder, but it can be refinanced at any time,” he said, adding that a refinancing could save the district between $70,000 and $75,000 a year for approximately six years.
“The total money the district could save in interest dollars is about $456,000, unless you wanted it all up front, and then it would be about $419,000,” Aumer said.
Aumer said if the district were to take the cash up front, it wouldn't be able to use it in the budget, but instead would have to use it on capital improvement projects. The money would also have to be spent within three years.
If the district were to decide to refinance and took the annual payments, it would be allowed to use it in the budget or for any other purpose.
Aumer said the savings would be significant for the district.
“We usually see if the savings are at least at the 2 percent mark to make refinancing even worth it,” he said. “If it were at the 2 percent mark, you would see a savings of about $100,000, but right now the savings are at about 8 percent.”
The directors will discuss the possibility of having everything locked in in mid-December.
In other business, Kelly Patterson of Nutrition Inc. which provides meals to the students during school, discussed new programs being implemented, including Wellness Wednesday where the company travels to a different elementary school within the district each week to let students sample a new healthy food item that at some point will be added to the lunch menu.
On Monday, directors will be asked to approve the resignation requests of some coaches and to approve other sports supplemental contracts as well as volunteer supplemental contracts.
In other business, Director Annette Wisneski called for the resignation of Director Denver Hudec. He said he would not resign and she said she would bring it up again at the next meeting.
Wisneski said Hudec was discussing in public items that were being discussed by the board in executive session. She accused Hudec of looking into the files of a past employee.