CLEARFIELD – Due to potential for a significant savings, the Clearfield County Career and Technology Center’s Joint Operating Committee authorized its administration to prepare the paperwork to refinance two bonds at Monday’s regular meeting.
Les Bear of Robert W. Baird & Co. proposed that they refinance the renovation bonds from both 2005 and 2006. In his refunding analysis, he advised there was potential for a gross savings in the area of $227,256, which would be shared among the member districts based on their percentage of debt payment.
If they opted to move forward and refinance, Bear recommended the committee do so through the State School Building Authority (SSBA). He said the SSBA could be their “vehicle” to issue the refunding. He noted that Kathie Pearcy, business manager for the CCCTC, would be required to submit an application to the authority.
According to him, they must also obtain a bond rating, which would take approximately 15 business days. Before contacting any agency for the rating, they must prepare an “official statement” to become their prospectus. Afterward, he said they would need to contact a bond insurance company.
“All put together, it will take about six weeks to capture the savings. Think about it,” he said. Bear said he would be present at next month’s meeting and have a parameters resolution prepared for them.
At that time, the committee would establish a minimum level of savings and approve for him to lock in a rate. However, he stressed they are under no obligation if the rates would go up close to his proposed refunding date of Nov. 1.
“We wouldn’t lose anything even if (the rates) went up a week before. It’s a win-win situation for us,” said Lois Richards, executive director of the CCCTC.