Brent Blevins, of George K. Baum and Company, was at the meeting of the Marshall School Board on Tuesday, September 24, and explained two options for the district to enter into a lease-purchase agreement with Wood & Huston Bank.
The lease-purchase boils down to $4.2 million to be refinanced and $5.3 million to be newly financed for a total of $9.5 million. Wood & Huston submitted a proposal to finance it all at a 2.10 percent interest rate, which is considerably less than the 2017 lease-purchase interest rate of 3.43 percent. In addition, the district will not be charged additional closing costs for the 2017 lease in either scenario.
In a release from Superintendent Dr. Carol Maher, the series 2019, 10-Year Combined option, both the 2017 and 2019 lease-purchase principal and interest (P+I) are combined for the entire 10 years. The average yearly payment is approximately $1,020,000. The overall net cost savings to the district over the 10-year period is $65,529.50. The first payment is lower, at $528,475 to help navigate through the completion of the Spainhower construction.
In the series 2019, Portion to Refinance 2017 option, the 2019 lease-purchase principal and interest (P+I) is scheduled for the entire 10 years. The 2017 lease purchase principal and interest (P+I) is scheduled to expire in eight years. The average yearly payment is $1,175,000. The overall net cost savings to the district over the 10-year period is $197,933. The first payment is lower for the same reason as the first option. The payments for the final three years are lower to adjust for the 10-year sunset on the recent tax-levy increase.
Currently the district is paying $931,357 yearly in principal and interest for the 2017 lease-purchase and it is due to sunset in eight years. If the Board approves Option No. 1, the payment would be $88,643 more yearly than we are currently paying. If Option No. 2 is approved, the payment would be $243,643 more yearly than the current payment. These payments will continue to be taken from Fund 4, where the district has been saving for the Spainhower Primary School project.
During the meeting, Dr. Maher said she thinks either option is more than doable.
Board member Dr. Erin Meyer raised a concern that the district will be incurring more debt.

Dr. Maher said she is sorry for not being more clear.

After a lengthy discussion, board member Tim Schulte made a motion to approve Option 1. It was approved- four yes to two no votes, with one abstention.