D70 saves $384,000 by refinancing bonds

Board also learns that its officer-election process has not followed the law.

By GAYLE PEREZ
Special to The View

The District 70 school board learned last week that its decision to refinance bonds issued in 1997 will save taxpayers $384,000.

Jim Harrington of the Public Finance Association told the board at its regular meeting last Wednesday that he was able to secure a much lower interest rate on the remaining $8.1 million of the 1997-issued bonds. The move will result not only in savings for taxpayers, but the potential for a better future bond rating for the district.

Harrington said the 3.69 percent rate he secured through JP Morgan Chase will result in a net savings of $384,000 over the final seven years of the bond-payment schedule. The bonds will be paid off in 2014.

Harrington also told the board that the refinancing has given the district a better advantage should it plan for another bond election in the future.

Based on the restructuring of the bonds, he estimated the district could potentially seek a $35 million bond issue in 2009.

"I think this positions the district quite well when looking at the future needs and when you prepare for future bond issues to meet those needs," Harrington said.

In other action, the board tabled the election of officers until next this week's special board meeting.

The board had planned to elect a new president, vice president, secretary and treasurer but decided to hold off on that decision after the board attorney told them they had been in violation of a state statute requiring that the board president and vice president be elected to serve for two years.

The board had been electing a new president every year.

Attorney Charlie Trechter's revelation prompted board member David Valdez to ask for an extension to allow for more time to consider the election.

The board was expected to elect officers at a special meeting at noon Tuesday.

Prior to last week's board meeting, Jan Reed and Bill Bregar were sworn into office for their second term. Both board members were first elected to the board in 2003 and both were unopposed tihs year, eliminating the need for an election.

In other action, the board voted on the expulsion of seven students. Two of the students were expelled through the end of the fall semester, while the other five are expelled through the end of the school.

Four of the students were expelled for violating the district's drug policy, two for behavioral issues and one was for graffiti.

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