A dramatic drop in interest rates, coupled with the district’s strong credit rating, has resulted in a significant reduction in the cost to Westonka taxpayers for the school building bonds approved by voters this past May.
At the July 11th Westonka School Board Meeting, the board approved the sale of $20,815,000 in building bonds at an interest rate of 2.19% for the creation of a new community athletics and recreation center and a new performing arts center.
Interest rates on municipal bonds have dropped considerably since last last winter and even since the pre-sale report was prepared for the school board in June. As a result, the actual true interest cost rate on the bonds is substantially lower than the estimates prepared prior to the election (3.5%) and in the pre-sale report (2.71%). The total principal and interest over the life of the bond issue will be approximately $3,409,000 less than the estimates used prior to the May 10, 2016 bond referendum.
This means the annual property tax increase on a $300,000 home will drop about $12 per year from the pre-election estimate — from $76 to $64 per year.
Thanks again to the Westonka community for their support of these much-needed facilities. Both are scheduled to be completed by fall of 2018.