Webster County Schools will be looking to save itself a considerable sum of money by refinancing its 2013 Series Bond Issue, the bond sold to raise money for construction of Webster County Middle School.
Dwight Salsbury, Managing Director of Lexington-based RSA Advisors, met with the board of education on Monday to breakdown a plan to refinance the $4.23 million bond.
Under Kentucky law, public schools are not allowed to take out loans in order to finance construction projects. Instead they must sell revenue bonds, which generate the funding needed to complete the project.
According to Salsbury, when the board sold the 2013 series bonds, the interest rate was at 3.891%. He told members on Monday that at present, they could expect to lock in an interest rate of 1.832% or lower, which would mean a savings of at least $390,027 over the life of the bond, which matures in 2034.
Refinancing the bonds will not result in any change to the maturity date of the bonds, only a reduction in how much the district will be required to pay in interest.
In other business, board member James Nance issued a request to chairman Mickey Dunbar to begin forming an exploratory committee to look into building a permanent archery center for students in Webster County. He volunteered to represent the board of education on such a committee.
“We as a board need to look into this and see what is possible,” Nance said. “Everything we have ever done here is because someone suggested it and the board looked into it.”
He suggested that trying to build a facility on property currently owned by the school would be ideal, but not required. He cited the archery complexes in both Henderson and Hopkins counties as examples of archery centers that are not directly located at a school.
“I think our archery programs will suffer if we don’t find a place for them to call home,” Nance said.
Contact Matt Hughes at email@example.com or 270-667-2069