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NewsBoard action will save taxpayer expense on Series 2004A bondsThe School Board took action at a special meeting August 17th to save taxpayers approximately $198,000 per year from 2014 to2025 on interest associated with Series 2004A bonds. The Board voted to refund the current Series 2004A bonds in order to take advantage of lower interest rates within the current market. The action in effect will refinance current bonds. The District will issue $46,595,000 of new bonds to replace the current bonds to save on interest rates. The proceeds from the sale will be set aside in escrow and invested until the old loan can be paid off. "Investors will respond well to this offer due to the district's current bond rating of Aa2 from Moody's Investor Services," said financial consultant Mike Hoheisel of Northland Securities. "I'm aware of only nine Minnesota school districts with a higher bond rating than Eastern Carver County." The Board's resolution set a minimum acceptable savings goal of $2,200,000. The Board's representatives at Northland Securities will monitor the market in order to refinance at the most favorable interest rate. | ||||||||||||||
