WAUSAU, Wis. (WSAU) – The Wausau school board has agreed to refinance $2 million in debt.

The move will save about $925,000 over the next two years and will reduce the debt service fund of the equalized mill rate by 23 cents.

The district must pay off the debt in 2020 and 2021.

The district got a better-than-expected deal by choosing Morgan Keegan and Company over four other bidders. 

Morgan Keegan came in with a true interest cost of 3.48 percent, less than the 4 percent the district had predicted.

This is the only time the district will be allowed to refinance its debt.  Officials acknowledge it’s not the best practice but say it’s necessary to offset raising the operating levy to replace a loss in state aid.