By David Fleet
Goodrich- On Oct. 19 the board of education voted 7-0 following the sale of its 2020 school building and site bonds, (tax-exempt bonds) in the amount of $17,370,000 and the 2020 refunding bonds, (federally taxable bonds), in the amount of $6,165,000.
“The low rate will result in significant savings to our taxpayers,” said Cristal Rousseau, director of business services for the district.
The tax-exempt bonds, come after school district voters approved on Aug. 4 a $20,930,000 bond extension. The school district’s tax-exempt bonds were sold at a true interest rate of 1.82 percent with a final maturity of 2035.
The bonds will not increase taxes rather extend the debt out about 15 years. Following an extensive facilities and condition assessment study of school district buildings last summer that total $45.9 million in upgrades, $26.5 million or 57 percent were recognized as critical within the next 1-3 years.
Included in the projects are erecting, furnishing, and equipping an addition to Oaktree Elementary School; remodeling, furnishing and refurnishing, and equipping and re-equipping school buildings for safety, security, and other purposes; acquiring and installing instructional technology in school buildings; preparing, developing, and improving parking areas, driveways, and sites (the “Project”); and paying the costs of issuing the tax-exempt bonds.
The federally taxable bonds will be used for the purpose of advance refunding all or a portion of the school district’s outstanding 2011 school building and site bonds, and paying the costs of issuing the Federally Taxable Bonds. The bonds were sold at a true interest rate of 1.73 percent with a final maturity of 2033 (a repayment term of approximately 13 years).
“The low rate will result in significant savings to our taxpayers,” said Rousseau.
The interest rate of the refunded bonds prior to the refunding varied from 4 percent to 5.5 percent. The refunding portion of this issue will reduce the School District’s debt service expenses over the next 13 years by $1,261,471.