The Pattonville Board of Education on Jan 12 approved a bond refunding that will save the district $1.3 million, or 8%, in interest payments over the next several years. The board authorized Stifel, Nicolaus & Company to refinance $13.5 million in debt owed on the district’s 2010 zero tax rate increase bond issue. Thompson Coburn was authorized as the bond counsel.
“This refinancing is calling bonds that had maturities in 2022 through 2025, and we will reissue them at lower interest rates,” said Ron Orr, Pattonville’s chief financial officer. “This is just one more way we can be good stewards of our taxpayer dollars and reduce our costs by a significant amount.”
Pattonville has been able to save more than $6 million in interest fees in the last two decades by refinancing bond issues or paying off bond issues early. The savings affect Pattonville’s debt service fund which pays for bond issue projects. The debt service fund cannot be used for the day-to-day operations of the school district, such as salaries, transportation and textbooks. The 2010 bond issue did not require a tax increase for approval.