During the Eastern Pulaski School Board meeting Monday evening, the board decided without any opposition to refinance the school’s pension bonds. Back in 2006, the state allowed schools to take out bonds to pay off their pension obligations, that money still needs to be repaid. With this resolution, the school will be taking advantage of lower interest rates to reduce the cost and still pay the bonds off in the same amount of time.
Superintendent Dan Foster provided a thorough explanation of what that means, “it’s basically like refinancing a home mortgage. Interest rates are better and sometimes people go in and refinance their mortgage and because it’s a better rate, they can pay a little less and pay it off at the same time it was already due.”
Thanks to the boards’ unanimous approval of this resolution, refinancing the pension bonds will reduce the cost of the next 6 payments and could save the school approximately $170,000 overall.
