The Shelby County Board of Education on April 21 approved a plan to refinance a portion of its outstanding debt at a lower interest rate.
By refinancing from an interest rate of 4.62 percent to a rate of 2.51 percent, the board will save around $5.52 million.
“Shelby County Schools have always had a deep commitment towards educating its students and providing a superior classroom experience,” said Matt Adams, a managing director at Raymond James who worked to help secure the new interest rate.
Adams added that the finance department of Shelby County Schools helps maintain the system’s financial health, which means that maintenance, upgrades and additions to facilities can be made when needed. “We are excited to receive this $5.5 million because it is essentially free money — money that otherwise we would be paying in interest,” said Assistant Superintendent of Finance Gary McCombs. “We can now use it for some needed improvements and to enhance the classroom experience.”
The system expected to receive the savings in late May. The projects the money will be put toward will be determined in the coming months as part of the district’s next five-year Capital Improvement Plan.
