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Published September 25 2012

Fargo schools issuing new bonds to cut costs

FARGO – The Fargo School District hopes to save at least $200,000 a year on bond interest by selling bonds at current relatively cheap interest rates and paying off higher interest bonds over time.

The board voted 7-0 Tuesday to sell $25,665,000 in limited tax refunding bonds this year. Board member Rick Steen said with interest rates at less than 3 percent, the district should save more than $200,000 a year by using a process called advance refunding.

The district plans to sell the new bonds, then put the proceeds in a trust fund, which will then be disbursed over time to pay for bonds issued in 2004 to build schools, Steen said.

Bond bids will be taken in the office of OS Advisors Inc., Fargo, through 11 a.m. Oct. 9, board documents show. The board will meet the evening of Oct. 9 to consider the bids. The latest bond issue would be paid in increments through 2023.