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WHEELING -- Some smart business maneuvering and the refinancing of a lease agreement will lead to Ohio County Schools saving more than $360,000 annually.
Ohio County Board of Education members this week approved the refinancing of a lease purchase agreement through Bank of America for energy saving equipment placed in buildings in the school district by CMTA Energy Solutions.
Previously, Ohio County Schools had an outstanding balance on its lease purchase agreement of $4,400,100, and an interest rate of 3.17 percent. This is according to Edward D. McLiney, senior managing director at McLiney and Co., a financial services company based in Mission, Kansas.
McLiney has worked in recent weeks to refinance the rate, which is now at 1.996 percent.
After expenses, the yearly savings is going to be about $360,000 to Ohio County Schools, he said.
"Interest rates are climbing quickly, and we wanted to get this done quickly," McLiney told board of education members. "We know who are the major bidders in West Virginia."
Six financial institutions were contacted, and three proposals were received, he said.
The lowest rate of 1.996 percent was offered by Bank of America, the holder of the prior agreement.
"They were the one who had the bonds we were refinancing, and they were the most aggressive in their interest rate," McLiney said.
He said had the school district waited another week, the new interest rate likely would have been at least another 0.25 percent higher than the one approved by the board.
Ohio County Schools will off pay the agreement over a 15-year period.