WCSD sees savings with interest rates
Economic conditions are paying benefits to Warren County School District.
“Rates continue to be really strong,” PFM Financial Advisors LLC Senior Analyst Melissa Hughes told the school board on Monday. “They have even improved over the last month.”
Those interest rates caused the board to unanimously pass a motion that authorizes PFM to hold an auction on about $10 million in district bond debt from 2013 — if the savings are right.
“Based on this estimate, you’re going to save about $100,000,” Hughes said. “You could be looking at a lot more savings, which would be great.”
The board expects to pay back $105,848.97 less on the bond debt based on interest rates on Monday.
The savings would be front-loaded, with the district realizing effectively all of the savings on its May 2020 payment, according to information presented by PFM.
Hughes said a change in the interest rate of just one-tenth of one percent would have a significant impact on the savings. The value of 0.10 percent on Monday was $87,272.11.
Following the board’s approval on Monday, the auction is set for Wednesday.