Representatives from PFM Financial Advisors spoke to the school board recently about a plan to save over a million dollars through bond refunding.

Parkland Business Manager John Vignone introduced PFM Managing Director Scott Shearer, investment banker Ken Phillips and bond counsel Jens Damgaard.

Vignone said district personnel and PFM advisors work as a team.

“We trust each other and we know what we’re doing,” Vignone said. “The financial advisor acts in the best interests of the school district.

“Our goal is to get a low interest rate. We have a very good rating.”

Shearer recommended refunding a $25.66 million bond from 2009 and a $7.67 million bond from 2012.

“Assuming current market rates, the refunding of the 2009 and 2012 bonds is expected to save the district $1.05 million over multiple years,” Shearer explained.

The savings are possible through refunding at a lower rate of interest than the bonds presently carry.

Shearer noted the current rate of interest on the municipal market is 1.7 percent.

The district is paying an average of 3.92 percent on the 2009 bonds and 1.78 percent on the 2012 series.

A parameters resolution will authorize district representatives to proceed with the refunding when the rates are lowest using up-to-the-moment information from the financial advisors.

The resolution will enable the district to take action whenever the timing is best for maximum savings.

“It gives flexibility to move in a market that’s up and down in an hour,” Vignone said.

Without the resolution, administrators would have to wait for board approval at the specified time and would probably miss out on the lowest rates.

Vignone reports the district saved around $5.5 million through bond refunding over the past four years, not including the forthcoming action.

The district pays about $15 million in debt service annually.