The Seneca Valley school board is looking to save about $500,000 when it refinances an old bond issue.
Christopher Brewer, bond counsel from Dinsmore and Shohl LLP, told board members during Monday's meeting that refinancing the $8.87 million bond issue would lower the district's interest rate on that loan to under 1 percent for the rest of the life of the loan. The current interest rate varies from 3 percent to 4 percent, he said.
Lynn Burtner, district business manager, said the bonds being considered for refinancing were taken out in 2003. She said at that time they were refinanced from a previous bond issue with even higher interest rates.
"At 3 and 4 percent, we thought they were good rates," she said.
Ms. Burtner said if the district doesn't refinance the bonds, it district will pay about $1 million in interest on the loan until it is paid off in 2017. Refinancing the loan now would save about $500,000 in interest payments and would not change the length of the loan, she said.
Laure Cioffi, freelance writer: email@example.com