School board approves refinancing bonds

The savings were enough to make it worthwhile for the Beatrice Public Schools Board of Education to approve refinancing its bonds.

The refinance will save the district about $231,000 on the total outstanding debt, said Al Eveland of Ameritas Investments, during a presentation to the board at a special noon meeting Tuesday.

He said the district took advantage of a similar opportunity in 2001, refinancing by refunding the bonds and selling new for the remainder of the bond period.

The district has a total of about $5.1 million outstanding on the bonds, which were approved in 1996 for the construction of the new high school and run through 2016.

“This is an opportunity for the district to save a pretty good amount of money,” Eveland said.

He said the district is allowed to do a refund of its bonds every five years, and added that he will generally bring a proposal for doing so when there is an opportunity at around a 5 percent savings, which is the case now.

BPS Director of Business Affairs Chris Nelson said the district could play the market and see what happens, but advised otherwise.

“Let’s book it,” he said.

The board approved two motions on the matter, both 7-0 with board members Bonnie Riekenberg and Lisa Goossen absent. The first motion was to call the current bonds early and the second was to issue new bonds.

Eveland said that while Ameritas has worked to pre-sell some of the bonds already, if the board wants to get some local sellers involved they can call him.