Duluth School Board won’t refinance Red Plan debt

The Duluth School Board voted to reject a resolution that would refinance long-range facilities plan debt Tuesday night. The decision follows a recommendation by the school district’s chief financial officer Catherine Erickson, who said economic conditions were not favorable as of right now.
“We’re not going to go forward with refunding because of economic conditions have not improved since it was tabled,” Erickson said. “We’ll take a holistic view in future months. Due to higher interest rates and less savings, we’re asking for the table at this time.”
This is the second time a resolution to refinance the bond was broached, the first coming at a Sept. 18 meeting where the matter was tabled. Earlier in the year, the School Board was given projections of more than $1 million in savings if they refinanced their debt. However, market variability has decreased those potential savings.
Superintendent Bill Gronseth said the School Board will consider refinancing the next time conditions look right.