WLC changes $8.2M bond to 20-year term
LYNDEBOROUGH– The board of the Wilton-
Lyndeborough Cooperative School District has negotiated the approved bond of $8.2 million as a 20-year term instead of the 30-year bond approved at district meeting in March. The change was made to save the district a lot of money and was possible because the warrant article authorized the school board to make whatever deal they could get.
The board approved the shorter term at an earlier meeting and Sheila St. Germain of the New Hampshire Bond Bank met with the board at their regular meeting June 24, at the Central School.
“Thirty year bonds are hard to sell,” she said, “and a 20-year bond isn’t that different and you’ll save a lot (in interest payments).”
Under the new terms, Lyndeborough will continue to pay $96,564 each year, with a savings of about one million dollars under the shorter term.
Wilton’s payments vary through the years but the 20-year bond will save the town about $2.6 million over all.
St. Germain said, “It is much easier to go to voters and tell them you’ve overestimated than to say we need more money.”
Board Chairman Geoff Brock said he had informed the cooperative budget committee, as well as the budget committees in both towns, of the change.
The board is also negotiating with the state Department of Revenue Administration to allow Lyndeborough to make a half payment at the beginning of the repayment schedule because of the difference in fiscal years. Towns operate on a calendar year while the school’s fiscal year begins on July 1.
St. Germain said the board had to have a policy in place to ensure that a future board doesn’t try to override the bond terms.
“It has to say that this building stays a school for the next 25 years, even if you find (at some future date) you don’t need this school. It has to stay a school or for other public use,” she said.