"When

we have an opportunity like the reduction in interest rates where the

result will be a savings for the taxpayer, we feel we have an obligation

to take advantage of it," said comptroller Jim Stephens.

Monetary savings

can be used only to keep the bond propety tax rate as low as possible

and does not affect maintenance and operation expenses of the school system,

according to Stephens.

The $1.3 million

savings will be accrued over the next eight years. Due to laws governing

bonds, refundings cannot exceed the term of the original obligation, which

in this case is eight years.

Currently,

the board of education has refunded all bonds that are eligible for this

issue period, said Stephens. Two additional refundings in 1999 of the

1991 Certificate of Participation and the 1994 bond resulted in approximately

a $2 million savings for taxpayers.