Evergreen Public Schools Saves Taxpayers By Refinancing Remaining Bonds
Evergreen Public Schools is happy to announce the refinancing of the last of its 1999 and 2002 bonds. The lower interest rates mean a savings of $1.9 million for district taxpayers over the next ten years. Combined with previous refinancing efforts, taxpayers are keeping a total of $11.6 million for themselves.
The lower-interest bonds were sold January 25, 2012 after being approved by the district’s Board of Directors at their January 10, 2012 board meeting.
“Through the sale of our bonds, we’ve been able to save the taxpayers of our district a lot of money,” said John Deeder, Evergreen Public Schools’ Superintendent. “Since these bonds can only be refinanced one time, we’ve been watching interest rates closely and feel that we’ve done what’s in the best interest of our patrons.”
During a competitive bidding process, the district received bids from 15 underwriting firms from across the country, ensuring the lowest possible interest rates. The cost of the new bonds will be 1.9 percent, significantly lower than the 5 percent on the old bonds.
Public Financial Management’s Mark Prussing, the district’s financial advisor, said interest rates on the bonds were remarkably low. “As interest rates have declined, the district has worked carefully to restructure its outstanding debt in order to maximize savings for taxpayers,” said Prussing. “Bond interest rates are lower now than they have ever been.”
Following the refinancing, Moody’s Investors Service reaffirmed the district’s credit rating of Aa2, citing sound financial operations, manageable debt profile, and community support in the form of maintenance and operations levies.
The refinanced bonds were part of a package of projects approved by voters in 1999 and 2002. The proceeds of the original bonds were used to build Heritage High School, Shahala Middle School, Illahee Elementary School, York Elementary School, Columbia Valley Elementary School, Union High School and Endeavour Elementary School. Additionally, the bonds paid for the remodel of Evergreen High School and the rebuilding of Cascade Middle School, Covington Middle School and Orchards Elementary School.
