Hudson Board of Education Approves Debt Refinancing

The Board of Education met for a special session at the district headquarters Tuesday night to discuss the issuance of $9.1 million worth of General Obligation Refunding Bonds.

The district needs to issue new bonds in order to "pay the cost of refinancing certain of it's outstanding obligations," according to the resolution passed.

Issuing the new bonds will help pay off the districts 2001 General Obligation Refunding Bonds.

Financial Services Director Tim Erickson told the Hudson Patch that refinancing the debt "will bring the interest rate from 4.55 percent to 1.63 percent."

Brian Brewer, a financial advisor to the Hudson School District and representative from Robert W. Baird & Co. was on hand to answer any of the boards questions about the bonds.

Brewer noted that "it's because of the poor economic conditions that rates are as low as they are."

The reduced interest rates will save the district a lot of money in the coming years as well.

Brewer stated that the "reduction in interests costs will save interest payments over the next six years of $1,064,000."

Board member Lynn Robson said that the savings "we picked up were substantial."

Brewer put it best when he said that getting a lowered interest rate is "like making lemonade out of lemons in this economy."

The bonds will be issued on July 6, 2011, no tax increase will result from there sale.