The Baldwin County Board of Education voted Thursday to refinance $89.4 million in construction bonds originally issued back in 2007, a move district officials say will save local taxpayers roughly $10.4 million over the life of the loan.
Chief Financial Officer John Wilson told board members the original bonds carried an interest rate of 4.82 percent. With tax-exempt interest rates sitting near historic lows, the district was able to refinance the debt this week at a rate of just 2.90 percent. Wilson noted the refinancing does not increase the school system’s overall debt load or extend how long it will take to pay off the bonds — it simply locks in a lower rate on money the district already owed.
The refinanced bonds received strong marks from national rating agencies, coming in at Aa3 from Moody’s and AA- from Standard & Poor’s. According to information presented to the board, Moody’s review found the Baldwin County school system’s overall financial position to be healthy heading into the new year.
Board members also handled a full slate of other business during Thursday’s meeting. They approved the 2015-16 academic calendar, which was chosen through a vote of teachers and school personnel. Under the new calendar, classes will begin Aug. 13, with a full week off for Thanksgiving break Nov. 23-27 and the fall semester wrapping up Dec. 18. Students return Jan. 6, get a day off for the Martin Luther King Jr. holiday on Jan. 18, and two days off for Mardi Gras Feb. 8-9. Spring break falls March 28 through April 1, with the last day of classes set for May 26 and graduation ceremonies scheduled for May 18-19.
In personnel moves, the board approved several teacher transfers, most notably shifting Gulf Shores High School head football coach Ben Blackmon into the same role at Spanish Fort High School.
The board also gave school officials the green light to begin negotiating a land purchase near Foley High School, though that deal hinges on voters approving a proposed 8-mill property tax increase at a referendum set for March 31. Separately, the board approved a budget amendment for submission to the state Department of Education reflecting a general fund balance of $39.5 million, equal to roughly two months of operating reserves.
District officials framed the bond refinancing and healthy reserve levels as evidence that Baldwin County schools remain on solid financial footing even as the system continues to weigh future capital projects tied to the county’s growing student population.