The school district has completed a refinancing of approximately $20,000,000 in debt, Treasurer Kathryn Sines said at the board meeting this week.
Sines got board approval in May to go forward with the transaction, as long as it would be financially advantageous to the district. She said they had been hoping for a net savings of approximately $350,000.
The actual savings was $732,426, and Sines attributes this to current low interest rates.
Board President David Zuro said there was a second important aspect to the refinancing beyond the financial savings.
He said that the refinancing "helped minimize the risk" that the district would have to make up shortfalls of revenue that might not be received from future income tax collections.
The original financing was based on the assumption of 2 percent income tax growth in the city, and Zuro said "the forecasted increase is not coming to fruition."
The new payment structure is based on lower growth assumptions, beginning at a half percent for 2013 and does not rise above 1.5 percent through 2034.
Under the original payment schedule, the district would have paid $34,400,993 by 2034. The current schedule requires $28,036,758 to be paid during that same time period, resulting in a savings of $6,364,235, according to documents provided by Sines at the meeting.
"This is really good news for the district," said Zuro.