West Middlesex Area School District could save about $1.7 million over the next 20 years because on Monday school directors approved an interest rate swap on $14.68 million in outstanding bonds.

The move was made because short-term interest rates are now higher than long-term fixed rates, which means that by converting the current 1-month rate to a 10-year rate the district can save money — about 100,000 per year, depending on market conditions, Superintendent Alan Baldarelli said Tuesday.

School directors also talked the financial firms and lawyers handling the deal to lower their fees by 17 percent, which will save the district $29,138, district business manager Kim Buchanan said.

“We really believe over the long haul we’ll save the district money,” Baldarelli said. “(People in the district) have to know the district and the board are doing their due diligence to manage their money correctly.”

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