Carson City taxpayers will pay less and complete payment sooner than originally planned for a $29.7 million school bond issued in 1990.
"It's sort of like refinancing your home at a lower interest rate," explained Bob Anderson, financial director for the Carson City School District. "We have a lot lower interest rates."
Anderson presented three options to members of the Carson City School Board during the meeting Tuesday evening.
Trustees voted to refinance, but left the specific means up to Anderson.
Anderson narrowed the options down to two. In one, the taxpayers save $1.5 million and pay the bond off by 2009 instead of 2011. However, some risk is incurred.
The other is less risky and will save the taxpayers $1.2 million and will be paid off by 2010.
Although the schools will not receive any of the money saved, Anderson said it will still be a benefit for the district.
"We have a fiduciary responsibility to the taxpayers to use their money as responsibly as possible," he said. "If there's a possibility to reduce the amount of interest we pay, it's a good thing to do. Everybody wins."
The 1990 bond paid for extensive remodeling of the high school and to build Mark Twain and Fremont elementary schools. It was refinanced in 1993 to $25 million.
An $18 million bond was also passed in 2000 and a $3.75 million bond was approved by voters in 2002.
School board trustees also approved an amendment to this year's budget.
According to Nevada law, school budgets must be decided in May. However the amount of money the school districts receive is not determined until September, when the number of students are calculated.
The Carson City School District will have $551,421 more than was budgeted.
"The majority of it is fenced off for textbooks and other instructional hardware," Anderson said.
Contact Teri Vance at tvance@nevadaappeal.com or at 881-1272.
