The Siloam Springs School Board approved a request by Superintendent Jody Wiggins to refinance one of the two bonds at Thursday’s school board meeting.
The bond has an outstanding principal balance of $ 8,125 and was issued on March 1, 2019, based on the bond refinancing request. By refinancing the bonds, the Siloam Springs school district will be eligible for a lower interest rate, Wiggins said.
The current interest rate is 2.96% and the new rate to which SSSD is eligible is 1.55%, Wiggins said.
Wiggins told the board he received a phone call from Scott Beardsley, chairman of First Security Beardsley, the financial institution that made a deal with the school system, to let him know the bonds had come calling. and could be reimbursed again.
Investors have a certain amount of time during which bond issuers promise not to try to redeem the bonds, Wiggins said. When the bonds are called, investors are notified that the bonds are eligible for refinancing, Wiggins said.
Beardsley estimated a savings of between $ 800,000 and $ 1 million, Wiggins said.
“It won’t be a check written to us, it will be savings on our payable savings bonds,” Wiggins said. “So it’s like refinancing your house and lowering your payment. “
Wiggins asked Beardsley why this bond is eligible for redemption and not the second bond of $ 40,585. The Superintendent has been told that if a bond is less than $ 10 million, the bank can make a two-year call, while bonds over $ 10 million have a five-year call.
The other bond was issued on March 1, 2020, the demand indicates.
Once the school district requests the rebate, First Security Beardsley will need to place an ad in a statewide newspaper so investors are aware of the opportunity. Since the bond is less than $ 10 million, the bidders will most likely be Arkansas companies.
If the school district changes its mind and does not repay the bonds, it will owe First Security Beardsley’s advertising costs for the project, Wiggins said.
Under the scenario presented by the school district, it will achieve total savings of $ 916,477, Wiggins said. The superintendent predicts that companies could start bidding on the bonds as early as the first week of August.
The school board also discussed the following points during the meeting:
• Approved the minutes of the June 10th school board meeting.
• I have heard reports from Wiggins, Deputy Superintendent Amy Carter and Shane Patrick.
• Approval of the June financial statement.
• Approval of policy updates proposed for the 2021-2022 school year.
• Approval of an agreement with BiLD Architects PLLC.
• Submission approved to seal and scratch middle school parking lot.
• Approval of an offer with Commercial Audio Systems for the upgrade of the audio system.
• Approved the 2021-2022 school improvement plans.
• Approved the resignations of the following authorized personnel: Maygen Clark, Allen Elementary special education teacher; Leigh Chickering, first grade teacher at Allen Elementary; Tayler Mounce-Caldera, Grade 1 Allen Elementary; Heather Hardcastle, college social studies.
• Approved the hiring of the following authorized personnel for the 2021-2022 school year: Kim Tillman, school literacy interventionist at the college; Maureen Broglen, college math; Arlie Templeton, intermediate art; Alexandra Savage, Grade 5 Intermediate English Course; Audrey Mathe, Northside Kindergarten teacher; Ashley Lee, Allen first year; Christopher Gorgas Coonrod, fifth and sixth intermediate SPED; Anita Pursley, high school math; Brittany Huffaker, SPED High School; Linda Williams, high school career and technical education; Debra Elkins, Northside Specialist Educator.
• Approval of two transfers of students outside the SSSD.
• Bid approved for Southside East flooring project.
• Approval of the summer hiring list.