Mexico School Board authorizes bond refunding and saves $321,523

The Mexico School District No. 59 Board of Education held a special session Tuesday evening to address a refunding bond resolution. All members of the board were present.
Larry J. Hart and Courtney Wegman of L.J. Hart and Company of St. Louis addressed the board with the details of the proposed resolution. Currently the district has Series 2010C, Series 2011 and Series 2011A bonds which carry a combined average interest rate of about 3.28 percent. The proposal would authorize the sale of these bonds and the purchase of $6,710,000 in General Obligation Refunding Bonds at an average interest rate of 1.99 percent.
The savings from this refunding would be approximately $321,523. Add that amount to the previous refunding resolutions authorized by the board, valued at approximately $1,466, 284, and the district, since 2001, has saved approximately $1,787, 807 of interest expense.
The resolution passed unanimously.
"I'm happy with the savings," Board Member Patrick Maguire said. "This is similar to paying off your house early. It will save money in the long run."
Business Manager Step-hanie Norris pointed out that this change, like the previous ones, would not significantly alter debt service payments. "This plan does not materially change our existing annual debt service, while preserving considerable flexibility for the District in the future," she said.
Hart also explained that the First National Bank of Audrain County will purchase $1,345,000 of the new bonds as a show of strong support for the issue. The closing for the Series 2013 Refunding Bond issue is set for Dec. 19.