LAKEVIEW — School board officials in Lakeview were able to save area taxpayers around $93,204 by refunding a bond older than any of the students.
The interest rate of the 2008 Refunding Bond was 3.5 percent and scheduled to end at 4 percent in 2022.
At the Feb. 14 school board meeting, Lakeview Community School’s bond counsel presented the opportunity to refinance the 2008 Refunding Bond, which was used to refund a 1998 bond.
“Our 2008 debt fund was actually a refunding from our 1998 bond refunding,” Root clarified. “Our 1998 bond refunding was from a 1996 construction project. The 1996 bond issue was $13 million.”
Refunding bonds are used to replace old bond issues with a newer bond issue, typically at a lower interest rate.
The original 1996 bond issue was passed used to remodel and expand the high school media center, shop areas, art room and cafeteria and add five classrooms, a wrestling area and new locker rooms. In the middle school, the bond was used to remodel the science areas and upgrade mechanical facilities. The bond also incorporated remodeling expansion and demolition of parts of Lakeview Upper, Trufant Lower and Lakeview Lower elementary schools.
Refunding the loan passed the school board, and the new interest rate is 1.86 percent.
Lakeview Superintendent Kyle Hamlin explained refinancing is a very common practice to save taxpayers money.
Just like a home loan can be refinanced, so can school bonds, Root said.
“In the end, it is really just an opportunity to be steward’s in the community and saving our taxpayers money whenever we can,” Hamlin said. “We have been blessed to have great support in our initiatives throughout the years to have facility upgrades. This is a small thing we can do to show that we are conscientious about taxpayer expenses.”