By SUSAN RUMBLE

Special to The Press

Parkland School District’s financial team is preparing to refinance bonds from 2017 which presently carry a 3.25-percent interest rate and have a principal of $9,385,000 outstanding.

At the Aug. 17 workshop, Scott Shearer, managing director of PFM Financial Advisors LLC, reported at the current municipal bond market rates, the action could save the district $406,191.

He commented on two converging reasons for the refinancing at this time.

“The rates are extremely low, and one of the bond issues is legally callable,” Shearer said.

He noted the district will look for a minimum savings threshold of $400,000 before undertaking the transaction.

Parkland Business Manager John Vignone said the rates are very low now but could be impacted by what is going on in the world and in the markets.

“Municipal bonds are an investment people flock into when there is risk and turmoil,” Vignone said. “A lot could happen that could derail things.”

The board approved a parameters resolution to give flexibility to the financial team to go to the market and make a quick decision when the rates are most appropriate.

Vignone explained about $90,650 accrued from the refinancing will be applied to the 2021-22 budget as a “flat out saving.”

For the larger amount, more than $300,000, the district will have flexibility for its use in 2022-23.

“They can build up the fund balance or reduce the budget by that amount,” Vignone said.

He recalled the district saved about $5 million to $6 million through bond refinancing over the last 12 years.

“Interest rates came down, and opportunities grew for us more and more,” Vignone said.

He noted residents can be thankful the Parkland School District board approved the bond refinancings which saved millions of dollars for them.