A move by the Jefferson County Board of Education to refinance loans will save the district money because of lower interest rates, and also free up several million dollars that were previously used as a form of collateral.

The board voted in its regular meeting Thursday to approve the issuance of new warrants, which will replace a similar warrant that was issued in 2000 by the Jefferson County Commission. The commission had to issue the warrants at that time because the Jefferson County Schools were under state intervention due to financial problems.

“At that time the board did not have the authority to go into the bond market,” Supt. Craig Pouncey said. “This move gets us free and clear of any former obligation we had to the commission.”

The warrants were issued by the commission to help JefCoEd pay down outstanding fund balances, which had accumulated a deficit of about $30 million, Pouncey said.

The new warrants carry a much lower interest rate — 1.5 percent, as opposed to 5.5 percent on the commission’s original warrants. In addition, JefCoEd will see an immediate benefit when funds that were used to back up the original warrants are released.

“They were holding almost $4 million in reserve in case we were to ever default. Now we can put that money directly to the debt,” Pouncey said.

The new warrants will be for $11 million, and will be paid off by 2019.

In other business, Pouncey told the board that the system had a slight decrease in enrollment for the 2015-16 school year. Overall, there are 84 fewer students enrolled than in 2014-16.

Using a rule of thumb that 20 students equals one state-funded teaching unit, JefCoEd will lose state funding for four units next year, Pouncey said.

The board also recognized four students from Jefferson County International Baccalaureate School — including one who lives in Pinson — who have been named semifinalists in the National Merit Scholarship program.

Katie Stahlhut has a number of achievements in her academic career, including selection as a Constitution Day Fellow by Samford University, winner of the National German Exam Achievement Award in 10th grade and the bronze medal in 11th grade, and a member of the Girl Scouts of America North Central Alabama Board of Directors.

Stahlhut has also been a member of the Alabama Youth Symphony, playing flute and piccolo, and is also designated as an Advanced Placement Scholar with Distinction. She also plays in the Shades Valley High band.