The school building bonds that voters approved in November went up for sale on February 6th. The district’s financial advisor Ehlers and Associates obtained seven bids, with the lowest interest rate coming in at 2.1%.
This is significantly lower than interest rates were trending this past summer.
Joel Sutter, Ehlers Executive Vice President, stated: “In terms of total interest cost over the life of the bond issue, we estimated $9,852,000 last summer. The actual interest cost will be $6,102,000, or more than $3.7 million less than our estimates last summer.”
Sutter added that the interest rates Westonka received on the bond sale are among the lowest the bond market has seen in 45 years.
Our district’s strong credit rating further helped us secure a low interest rate.
Moody’s Investor Services announced last Friday that it had assigned District 277 an underlying bond rating of Aa2. Only ten districts in the state have a stronger credit rating, and sixteen districts have an equivalent rating.
Sutter explained that this strong rating was achieved due to the characteristics of the community and the financial management of the district.
So what does this mean for taxpayers? On a $300,000 home, instead of a property tax increase of $13.50 per month, the actual increase in 2013 will be $11.20 a month. That’s a drop of $27.60 per year, or 17%.
In even MORE money-saving news…Westonka was able to re-fund bonds we currently have in place, saving the district’s taxpayers $75,000 in interest costs.