By Derrick ForsytheRecord Staff WriterA plan to refinance its lease from 2010 will save the Warren County R-III School District $198,312 over the course of the next five years.The board voted 6-0 to approve the decision during its monthly meeting May 14.The Series 2015B Refunding Certificates were underwritten by L.J. Hart & Company and had a closing date of May 26. Banks were given the option to purchase the bonds, with First State Community Bank purchasing $250,000 and FMB Bank acquiring $400,000 of the certificates to support the district.“The plan takes advantage of the lower interest rates currently available in the market, while preserving considerable flexibility for the district in the future,” said Superintendent Dr. Jim Chandler.The move authorized the sale of $2,685,000 lease refunding certificates, which carry an average interest rate of about 3.95 percent. The refinancing option will provide an average interest rate of about 1.23 percent and shorten the final repayment period by one full year from the original Series 2010 Certificates.“This is paid out of our capital projects account,” said Chandler. “It will cut a year off our lease payment and saves interest money, so down the road it will free up operating money, which is viable to the district.”Significant factors making the refunding possible are lower interest rates than in 2010, the fact that the refunding bonds carry an “A” rating from Standard & Poor’s Corporation and the district has an “A+” issuer credit rating from S&P based on evaluation of its overall credit worthiness and that the Series 2010 Certificates were subject to prepayment May 27, 2015, at no penalty.“If we have excess funds in 2017, we can take advantage of a prepayment,” said board president Teresa Scott. “Meanwhile, we are locking in these levels that nearly 2.75 percent lower than they were in 2010.”The $198,312 figure can be added to the savings since 1995, totalling $6,295,205.The lease originated from the Series 1996 project defined as High School Phase I, that included the construction of 37 classrooms.R-III district approves refinancing