A bond refunding plan approved by the Harvard School District 50 Board on Monday is estimated to save more than $284,000 in interests costs to the district’s current bond debt over the next 12 years.
The net interest cost of the refinanced general obligation bonds from 2008 and 2009 would drop from 5.8 percent to 3.55 percent, according to a presentation from Chicago-based Bernardi Securities made to the district’s finance committee earlier this month.
“The interest rate changes allow us to capitalize [on savings] and garner more money for things we need to do in the district,” District 50 Superintendent Corey Tafoya said.
These savings also will equate to about $5 savings a year on the district’s portion of the property tax bill for a $150,000 home, Tafoya said.
A public hearing and vote on the bond refunding were held during Monday’s board meeting. No one spoke during the hearing, and the resolution to provide for the refinancing of the bond, not to exceed $5.4 million, was unanimously approved. According to Bernardi Securities’ proposed timetable, a Moody’s rating on the bonds will be received Aug. 10, and the remaining bonds will be marketed to potential investors Aug. 16.
In 2015, the district voted to refinance part of a 2009 bond, which had been issued by referendum to build Crosby Elementary School, 401 Herely Drive, in an amount not to exceed $10 million.