With interest rates near a 40-year low, the Athens Area School District is looking to refinance two bond issues, with expectations it could bring nearly $270,000 worth of savings over the remaining life of the bonds.
The measure is expected to be voted on during the school board’s meeting next week at SRU Elementary following a suggestion by the district’s financial advisor and a presentation during Tuesday’s workshop meeting.
According to Business Manager Laura Perry, the district looks to refinance when its savings can amount to more than a 2% threshold. The case of the 2.68% interest rate at the end of last week, Perry said that potential savings from this bond refinancing could equal around 4%.
School board member Charles Frisbie said the district has been lucky with interest rates, including with its 2002 building improvement project when the bond market was at a 30-year low and other refinancing at a 20-year low.
He estimated that the school district has saved around $500,000 in interest over the years.
“Interest rates have never been lower than they are now,” said school board member Joe Joyce. “We need to do this now if we’re going to do this.”
Before the board can adopt a resolution, it will be legally advertised for three days.
The life of the two bonds will be up during the 2026-2027 school year, according to Perry.