The transaction will result in a net savings of $91,038 for the district, according to the district's bonding firm, St. Louis-based LJ Hart and Company. The savings is a sizable increase from two weeks ago when board members were told it would be closer to $69,000. Tom J. Pisarkiewicz of LJ Hart and Company said the extra savings of approximately $21,500 was the result of dropping interest rates and a commitment from investors. He noted local banks were offered the chance to purchase the bonds. The lone area bank to do so, First State Community Bank, made a commitment to purchase $450,000 in bonds. The closing on the Series 2009 bonds will occur Feb. 5. Superintendent Dr. John Long said this type of action is similar to someone refinancing their house, as the district will make the same monthly payment but over a shorter period of time thus saving money on interest. "This plan follows the long-range plan of the district to capture available interest rate savings and accelerate the payment of the district's debt, while maintaining the ability to meet our future goals," Long said in a release. The school board approved the motion 6-0 with Board President Carmen Schulze absent. "We are committed to good financial stewardship on behalf of the taxpayers," Board Member Dale Schowe said. Interest rates on the bonds will average around 2.10 percent, compared to the current average rate of 3.73 percent for the Series 2002 and Series 2004 bonds. The savings of $91,038 combined with other refinancings and prepayments has saved the district $1,576,883. Also, the final maturity on the $8 million Series 1998 bonds for the completion of the high school has been shortened to March 1, 2015, from March 1, 2018. "It shows strong fiscal management of the district," Pisarkiewicz said. Last month, the district was approached by the bonding firm on the possibility of using a no-tax increase bond issue to prepay some of its debt. However, the school board declined to use $7.5 million in available bonding capacity to free up operating money. The extra funds could have been used on a capital project, such as the construction of a practice gym. Since the district chose to refinance its current bonds, Pisarkiewicz noted the district's bonding capacity is expected to increase to $8.5 million next year.