Bob Young

Bob Young of Frazer Lanier Company addresses the county school board about signing warrants and the closing documents for refinancing on the bond loans on the Reeltown and Horseshoe Bend projects

The Tallapoosa County Board of Education will receive nearly $635,000 cash before the end of the year for capital improvements and about $323,000 reduced debt service payments next year. The board unanimously passed a 2.66% bond rate and signed closing documents for refinancing on the 2010 bonds for Reeltown and Horseshoe Bend projects at its special-called meeting Monday.

Frazer Lanier Company president Bob Young said the board is saving $950,000 to $1 million in returns from the signing.

“I think it’s important to point out having the special meeting (Monday) has added about $150,000 savings to this transaction,” Young said.

Because the school board borrowed less than $10 million this year the bonds are bank qualified, or a qualified tax-exempt obligation. If the board closed on the loans in January it would lend more than $10 million, and instead of saving $950,000 would have about $800,000 in savings for fiscal year 2020.

The board will receive $634,741.05 Monday, according to Young. 

“We had a wonderful sale,” Young said. 

The board’s credit score meant it could receive a lower bond interest rate, according to Young.

“When you adopted your budget assuming you were making the full payment on 2010 now you’re going to have $322,000 less in expenditures this year toward principle interest,” Young told the board. “There’s no extension of payments. It’s all coming through in the same fiscal year that was originally set in 2010 when you did the finances.”

Board member Betty Carol Graham asked if architect fees are included in the capital improvement plan.

“Anything to do with the capital improvement projects should be good to go,” chief schools financial officer Tommy Thweatt said.

Thweatt mentioned the $323,000 reduced debt payments will go to the capital projects.

Director of student services Casey Davis led the meeting in place of superintendent Joe Windle, who was not present.