School board votes to refinance bonds when interest drops 3%

In November 2003, district voters approved a 40.7 million bond issue.
BY AMANDA GARRETT
VINDICATOR TRUMBULL STAFF
WARREN -- The city school board passed a resolution that could save Warren taxpayers more than 1 million on a loan the board had taken out.
The board voted to allow Treasurer Angela Lewis to refinance 40 million in bonds if the district can get an interest rate 3 percent lower than the one it has. Officials didn't say what the current rate is. Any less of a reduction would not cover the costs associated with the reissue of bonds.
If the district decides to refinance when the markets are right, it could save Warren taxpayers more than 1 million, said Greg Slemons and Michael Prcela, of Fifth Third Securities Inc. Slemons and Prcela are working with Lewis on the bond issue.
"It's like refinancing your house," said Slemons, who was the district's treasurer for eight years. "When you find an interest rate that is going to lower your payments, you take advantage of that."
At this time, the market is not right for refinancing the bonds, but that could change in the near future, Prcela said.
Board Member Linda Metzendorf said refinancing is a prudent move for the district.
"We would be remiss if we didn't save the taxpayers all the money we could," she said.
Background
In November 2003, district voters approved borrowing 40.7 million through the sale of bonds to finance the district's share of a 153 million school construction project.
The district is working with the Ohio School Facilities Commission to replace all 13 of Warren's current schools with one new high school and four new kindergarten through eighth-grade buildings.
In other business, the board awarded a 193,000 contract to Continental Office Environments of Columbus for loose furnishings at the new Lincoln kindergarten through eighth-grade building on Atlantic Street, Northeast.
The board also awarded a 330,000 contract to Crosby Mook Office Equipment of Warren for specialized school furniture such as pupils' desks.
agarrett@vindy.com