The Wright City R-II School Board last month approved a refunding bond resolution authorizing the sale of $3,730,000 general obligation refunding bonds that will reduce the district's future interest expense by about $525,000. The board's action allows the district to take advantage of lower interest rates at an average of about 1.73 percent, compared to the Series 2003, Series 2006B and Series 2008 refunded bonds which carry a combined average interest rate of about 3.94 percent. The school district's underwriter, L.J. Hart & Company of St. Louis, presented the proposal at the board's Jan. 20 meeting. Representatives from the company said that the bond refunding brings the district's total interest savings to about $1,609,751 over the past 18 years. "This plan allows us to take advantage of the lower interest rates currently available to maximize interest savings to our taxpayers," said Superintendent Dr. Chris Gaines. "We're pleased that refunding opportunities have resulted in such substantial savings over time." Board President Austin Jones noted that the $525,000 of interest savings for the Series 2011A refunding is not all the savings the district may realize, since the bonds have a "call" feature in 2014 at no penalty. "If interest rates are lower in 2014 or later, we can take advantage of that," said Jones. "Meanwhile we're locking in these levels that are about 2.25 percent lower than when these bonds were issued." In presenting the plan, L.J. Hart Vice President Heather Mudd explained how it fits into the district's long-range plans. Mudd told the board that there were three significant factors making the Series 2011A refunding possible: lower interest rates than in 2003, 2006 and 2008; the fact that the Series 2003, Series 2006B and Series 2008 bonds are all subject to prepayment on March 1, 2011, at no penalty; and the district's ability to participate in the State of Missouri's Direct Deposit Program. This program makes it possible for the district to receive an "AA+" rating from Standard & Poor's Corporation on the refunding bonds. Mudd commended district administrators for prompt and thorough preparations to supply the data necessary for the rating application and official statement, and the board for its foresight in making the Series 2003, Series 2006B and Series 2008 bonds callable in three to five years. Closing for the issue is Feb. 3. The board plans to consider a similar refinancing of Series 2006A bonds at its Feb. 24 meeting.