By MELISSA PEACOCK

RESERVE – “Every time I think we can not get the interest rates any lower, it gets lower,” Bond Attorney Hugh Martin said. “I think we have hit just about the bottom of the barrel now.”

The St. John the Baptist Parish School Board did not have much on the agenda at a recent meeting in Reserve. But what the board members did vote on, Martin said, was a resolution “guaranteed” to save taxpayers big money.

After a short presentation by Martin, the board voted unanimously to approve a resolution authorizing the refinancing of some school construction bonds.

“It is just like refinancing your house,” said Felix Boughton, executive director of business and finance for St. John Parish schools. “There are costs to refinance. You have to pay the banks and you have to pay agents.

“If you can refinance, pay off the costs and still save money, then it is worth doing.”

When bonds are refinanced, an agent is named to represent the bond holder. That agent goes out into the bond market to price bonds (finance charges) and find the best deal.

“Back in 1993, the School Board issued bonds for school construction,” Martin said. “The interest rate has gone down now. We can refinance those bonds and save taxpayer money.”

Calling the resolution a “significant reduction in interest rates,” Martin told the board members refinancing at this time would reduce interest by about $456,000 over the life of the bond.

“It should be a very successful refunding, I think,” he said. “Even after paying all costs and expenses.”