The Harrisonville School District will save nearly $1 million over the next decade by refinancing some of its debt at a lower interest rate.
According to Joe Kinder, vice-president of George K. Baum & Company, the district has accessed the bond market when rates are at a historic low. The remaining principal on the old Series 2007 bonds had an average coupon rate of 4.89 percent, while the new bonds have an average coupon rate of about 3 percent.
The school board approved the bond refunding resolution in February. The 10-year interest savings is projected at $939,000.
The school district received an AA- underlying rating from Standard & Poor’s Corporation for the new bonds, based on its financial management and strong cash reserves. The district also utilized the Missouri Direct Deposit Program, which gives the bonds an AA+ rating.
That AA+/AA- rating helped the district attain the low interest rate.
In the most recent data available to George K. Baum & Company from Standard & Poor’s, only 15 Missouri school districts carry a higher rating than Harrisonville does.