District to save money by refinancing bonds
April 30, 2009 · Updated 4:28 PM
By Brenda Sexton, The Courier-Herald
Taking advantage of current low interest rates, the White River School District will refinance its 1992 bonds, which have already been refunded once before, saving taxpayers $62,000.
The board approved refunding the bonds at its regular meeting Sept. 10.
The district was currently paying a rate between 5.65 and 5.8 percent. The new rate, district business director Susan Smith Leland said, will be 2 percent.
Refunding bonds works like refinancing a home mortgage. The old bond is paid off and replaced with the new bond at the lower interest rate. The difference returns to district taxpayers through reduced property taxes.
"It's always small refunds, but we always take advantage of them," Leland said. Taxpayers will hardly notice the difference in their property taxes, pennies per thousand, but, due to refinancing, the district will be able to pay off the loan by 2005.
The original bond occurred in 1986 and was used to build Foothills Elementary and remodel Elk Ridge Elementary and White River Middle School.
Brenda Sexton can be reached at firstname.lastname@example.org