The Brainerd School District is expected to save about $333,000 if it refinances $4.6 million in bonds.
The district's Finance Committee met Wednesday and plans to recommend to the school board Feb. 10 to refinance the bonds.
Joel Sutter of Ehlers and Associates, the school district's financial advisers, calculated the savings by comparing the interest rates the district is currently paying and the interest rate it would pay if it refinanced. The school district's next payment for 2004 has an interest rate of 5.1 percent and in 2011 the interest rate is 5.5 percent.
If the district refinances, the projected interest rate for 2004 is 1.25 percent and in 2011 is 3.55 percent. Sutter said if the interest rate is higher than what the district is paying now it can reject the bids.
The Finance Committee also plans to make a recommendation to the school board to sign a 10-year lease with Tom Haglin to lease 12,052 square feet of space in the industrial park in Baxter for storage. In the first year of the lease, the school would pay Haglin $5,574 a month.
The district uses the warehouse at the high school for its storage space. The warehouse has to be vacated in spring as part of the school district building plans.
Brainerd Superintendent Jerry Walseth said the administration looked at several options and called this its best option.
Walseth said after the meeting the district cannot use building bond money to build a storage facility on school property. The facility was not part of the building plan supported by voters last spring, he said.
"There are a ton of needs we didn't include (in the building plan)," said Walseth. "We looked at the academic needs first. ... We didn't want to financially impact the community any more than we had to."
Brainerd Business Manager Steve Dickinson said this year the school district will use general fund dollars to pay the lease. He said the school can't levy for the dollars until taxes payable 2004.
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