CHESTERTON | The Duneland School Corp. will refinance the bond issue that paid for the new Chesterton High School -- when the time is right.

The School Board on Monday moved to save $1.3 million in debt service costs on the 1999 bond issue by authorizing the district's financial adviser to monitor interest rates and identify the right moment to refinance.

The adviser, Curt Pletcher, of H.J. Umbaugh & Associates, recommended the district move forward with refinancing the bonds.

But with recent increases in interest rates due to risk in financial markets, Pletcher advised the board to hold tight and wait until the situation stabilizes. Currently the district pays an interest rate of 5 percent on the bonds financing construction of the high school, which opened in 2000.

The goal, board attorney Michael Harris said, was to achieve a net savings of at least $1.3 million when the action is taken.

With the resolution, Pletcher will be in regular contact with the district and will indicate when rates are right for the refinancing. The term of the bonds -- 20 years to 2019 -- will remain the same.