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$600K Savings Found for USD 115

03/27/2015

(KMZA)--The Nemaha Central school district will see a more than $600,000 net savings with the refinancing of the bonds issued for the construction of the elementary/middle school in 2007.

The board of education during a special meeting Wednesday evening approved a resolution selling a bond issue which refunds a portion of the general obligation bonds issued by the former USD 442 to take advantage of current lower interest rates.

The callable portion of the Series 2007 bonds was requiring an interest rate of about 4.15%. Today’s lower interest rates allowed the callable portion of the bonds to be advance refunded by issuing new bonds at an average yield of about 2.37%.

Bond representative Bret Shogren of George K. Baum and Company, of Wichita, said the bonds were rated A+ by Standard and Poors Corporation.

The refunded bonds were structured in 2007 with gradually increasing payments through 2029. The new Series 2015 bonds were structured with level payments in the future for improved budgeting in uncertain times. Continued increases in the district’s assessed valuation could result in a lowered mill rate in future years.

With the Board’s approval, the refunding bonds will now be printed, a transcript submitted to the Attorney General’s Office for review and approval, and the transaction will close on April 9th.

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