Brighton School Board approves refinance that will save $71,000

BrightonLogo3_optThe Brighton School Board has approved issuing of bonds as a refinancing of a current debt that should save the district about $71,000 and not extend the term of the original loan.

The board approved the issuance and sale of the $955,000 in general obligation refunding bonds at a regular meeting Tuesday.

The district financed $1.5 million in 2005 to pay for a school building project. The district had until 2021 to finish repaying the debt, but was facing an April 2015 call date. If the district had stayed with the original financing, the 3.87 percent interest would have increased to 4 percent, explained Penny Boileau, district administrator.

By issuing the new bonds as a refinancing of the amount it still owed plus fees, the district will now have a interest rate of 1.4 percent, Boileau said. Total savings through 2021 should be about $71,000.

“This is money we now won’t tax,” said Boileau.

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