COVINGTON -- The Newton County School System expects to save nearly $10 million in capital funds by replacing older bonds.
During its monthly meeting last week, the Newton County Board of Education unanimously approved a recommendation by NCSS Superintendent Gary Mathews to adopt a bond resolution for bonds issued in 1997 and 2010.
By doing so, NCSS expects to save $131,000 from the $2.955 million outstanding 1997 bonds due to a reduced interest rate, according to Bryce Holcomb, director of the public finance department at Citigroup, which serves as the bond underwriter for NCSS.
He said it also should expect to save $9.7 million for the 2010 bonds to pay for Qualified School Construction Bonds at a zero interest rate, as allowed under the American Recovery and Reinvestment Act.
The 2010 bonds are expected to help finance the Newton College & Career Academy in the amount of $13.05 million and a new elementary school for $12 million.
NCSS also hoped to get $11 million to help construct a new high school, but it was not awarded the funding since it had received funding previously under the ARRA program.
Capital funds generally are used for construction of schools and land acquisition for NCSS, according to Dennis Carpenter, deputy superintendent of NCSS.
The bonds are expected to close on Nov. 16.
School board Vice Chairman Almond Turner was absent from the meeting.