County School Board gives go-ahead for try at bond refinancing

The School Board for the Pulaski County Special School District on Tuesday voted to pursue the refinancing of its existing bond debt at lower interest rates as a way to save nearly $12 million over five years in debt payments.

The board voted 7-0 for a resolution authorizing district representatives to apply to the Arkansas Department of Education for approval to refinance the construction bonds originally issued in 2012, 2016 and 2017.

The refinancing plan was approved at a meeting in which the board also adopted a state-required, six-year plan for facility construction and renovation — much of which the district has no identified source of funding.

Additionally, the board Tuesday approved the district-wide replacement of Chromebook computer devices for students and faculty, and approved a one-year extension, to June 30, 2024, for Superintendent Charles McNulty. That gives him a three-year contract, which is the maximum allowed by law.

Jack Truemper, a senior vice president at Stephens Inc. and a financial adviser to the district, presented the board with the options for refinancing the outstanding bond debt to take advantage of what are now and could continue to be low rates of interest.

Truemper said, for example, that the Lake Hamilton School District this week refinanced $50 million in taxable bonds at 1.85%.

The Pulaski Special district bonds were issued with interest rates at 3% or higher.

The plan for the Pulaski Special district is to put the bonds on the market for refinancing at different times through the end of 2021.

If low interest rates continue, the district stands to generate $246,974 from the refinancing of its debt on 2012 bonds, $1.47 million from the refinancing of 2016 bonds and almost $10.6 million by refinancing two 2017 issues. Most of the savings from the refinancing would be realized in the first five years although debt payments would be made into the 2040s, Truemper said.

McNulty, the superintendent, said district administrators do not yet have recommendations

on how the savings would be used.

The School Board also adopted a resolution approving a required 2021 six-year master facilities plan to be submitted to the Arkansas Division of Public School Academic Facilities and Transportation.

The initial plan listed $53 million in projects, including $3 million for maintenance, $2.2 million for a track at Maumelle High, $25 million for expansion of Robinson High, $4 million for expansion of Baker Elementary and $3 million for a “retro-fit” of Harris and College Station elementary schools.

School Board members Eli Keller and Alicia Gillen, who both represent the Maumelle area, objected to the omission of an indoor practice facility at Maumelle High — the only district high school without that feature.

Gillen said she didn’t want the district at some future point to say that the facility couldn’t be funded because it wasn’t on the list.

“When I say ‘yes’ [to the list], what am I saying ‘no’ to?” she asked.

The board amended the list to include $7.2 million for the facility.