NEBRASKA CITY – The Nebraska City School Board held a public hearing Monday regarding refinancing bond debt.

Superintendent Mark Fritch said historically low interest rates presented an opportunity for the community to save just under a $1 million on the life of the bonds.

Fritch told the school board that when he started as superintendent in the district there was a negative balance in the general bond fund and the school had to borrow a $28,000.

Now there is $1.4 million in the fund, which is enough to cover  a $1.3 million payment due in November.

Board President Jim Nemec noted that the refinanced bond have a more realistic projection for district growth. When the school bonds were approved by voters in 2007, a growth rate of 5.92 percent was forecast so that the levy would be at $13.4 cents.

The district did not maintain a 5.92 percent growth rate, however. Last year the growth rate was 4 percent and it is at 3 percent this year.

Fritch said amending the budget to reflect the bond refinancing will not impact the property tax levy right away, but will save $999,000 over the life of the bonds.