GROVE CITY —
In other business:
■ The board approved refinancing a bond it took for $9,995,000 to finance its new middle school, which has been in operation for more than a year.
The 2009 bond has been paid down to $6,875,000 at an average 3.4 percent interest rate, but the board allowed a maximum of $8,040,000 to be taken out to pay off that amount and whatever additional expenses to refinance the loan.
There is to be no less than a 2 percent savings for the district on what's refunded times its current loan amount.
Leslie L. Bear, managing director of public finance at the Exton, Pa. office of investment firm, Robert W. Baird & Co., Milwaukee, convinced the board last at its Nov. 5 work session that the poor economy has created record-low interest rates for bonds - a 1.4 percent average - and the district could save more than $212,500 in refinancing.
Bear added at Monday's meeting that the Nov. 6 election brought rates down lower after President Barack Obama was re-elected.
After the meeting, he said it was expected because of the uneasiness over the president's initiatives to raise taxes for his health care law and for families with higher incomes.
If contender Mitt Romney would have won the election, those in Bear's field predicted that interest rates would have gone up.
Higher interest rates stimulate the economy, Bear added, although taking advantage of the lower rates will create a savings for the district.
Attorney Chris Brewer of Dinsmore & Shohl, Pittsburgh, also attended the meeting, and will be working with Bear - who said it will be four weeks before documents are ready and he can to look to the market for a new bond issue.
"We're going to get absolutely as much savings as possible," Bear said, or the refinancing will not be allowed to go through, keeping the district with its current bond and rate.
Published Nov. 14, 2012, in Allied News. Pick up a copy at 201A Erie St., Grove City.