NEW BLOOMFIELD - The R-3 Board of Education Thursday night reissued $1,130,000 in general obligation bonds at a lower interest rate, saving the school district $131,215 in future interest costs.
The board exercised an option to call the bonds that carried an average annual interest rate of about 3.78 percent.
The board then authorized its bond consultant, L.J. Hart & Company of St. Louis, to issue new bonds for the remaining balance of the bonds at an average annual interest rate of only 1.95 percent.
The bonds will be offered on a first-come, first-served basis to local financial institutions first, and then to investors across the state of Missouri.
New Bloomfield School Superintendent David Tramel supported the refunding option chosen by the Board of Education.
"This plan," Tramel said, "offers annual savings which will provide greater flexibility and strengthen our debt service fund balances in preparation for a no-tax-increase general obligation bond issue in the near future with voter approval."