West Valley bond refinancing to save $850,000
The West Valley School District has refinanced around $14 million of the bonds it has sold since its last construction bond, saving taxpayers about $850,000 as the district pays off its capital projects.
“It’s like refinancing a house,” said Deputy Superintendent Doug Matson. He said he was first approached for this idea in September, but felt if the district couldn’t get at least a 5 percent savings it wouldn’t be worth it.
During the board meeting on May 25, Seattle Northwest Securities offered the district a plan that would save 5.37 percent on its bond, or $850,000.
Both D. A. Davidson and Seattle Northwest presented plans, but Seattle Northwest offered the better discount from its underwriters.
Matson said the board will set its tax rate for 2012 in November.
The bond approved by taxpayers in 2004 was originally for $35 million and its bonds were sold in two increments. This $14 million is the first increment.
The plan was approved unanimously by the school board.