PEA RIDGE — Low interest rates will save thousands of dollars for both the Pea Ridge School District and the city of Pea Ridge as both entities are refinancing bond issues.
Pea Ridge School Boardmembers approved refinancing two bonds saving the district about $700,000.
“Based on the rates we are seeing, my recommendation is to refinance. I think this is a wise move for the district,” Dan Lovelady with Beardsley Finance told board members.
Lovelady said two previousrefunding projects for other districts got 3.03 percent interest and 2.48.
One of the bond issues has restrictions on the savings, requiring the money be used solely on academic facilities or academic equipment; the other has no restrictions so the money can be used on maintenance andoperation or the building fund.
The board unanimously approved the refinancing proposals at the regular meeting Feb. 13.
The city will save approximately $82,000 refinancing the 2007 Franchise Fee Revenue bonds, according to Kevin Faught, vice presidentof Stephens Inc., who appeared before the Council at their regular meeting Tuesday, Feb. 21.
“We’re just taking advantage of the lower interest rates so payments drop, therefore you save money. It doesn’t lengthen the payment time.”
The bonds were used to pay for the Weston Street project.
News, Pages 1 on 02/29/2012