Refinancing saves school district $2 million
April 30, 2013
Taking advantage of recent low interest rates, the Issaquah School District saved more than $2 million April 24 when it refinanced 21.17 million of bonds originally sold in 2004.
The district also sold $55 million worth of new bonds that day.
Seattle-Northwest Securities assisted in the sale. Refinancing more than $21 million of old bonds meant the interest rate went down from 5.25 percent to 1.27 percent, meaning that about $2 million will be saved over the next six years.
The savings will flow directly to taxpayers through reduced tax levies, and are not available for district expenses, according to Jake Kuper, the district’s chief of finance and operations.
The new bonds are the second installment on the $219.2 million bond measure approved by voters in April 2012. That $55 million has a true interest cost or real cost of 3.06 percent.
The proceeds from the sale will go toward construction projects at the front of the district’s eight-year building plan, including installing artificial turf on Maywood and Pine Lake middle school’s athletic fields and planning and construction for Issaquah Middle School.