District 197 Bond Refund to Lighten Taxpayer's Burden

Taxpayers in the will be getting a break courtesy of a successful bond refinance presented to the board Monday night.

Capitol improvement bonds approved in 2004 were put up for "refunding" (the bond market equivalent of "refinancing" in real estate) in late July by Ehlers & Associates.

Due to bid offers with very low interest rates, taxpayers will save about $5.5 million over 2014-2024, or a reduction of about $500,000 a year off of the annual tax levy. It does not impact the district's budget.

Jodie Zesbaugh of Ehlers said this was the third try for the refund. Prior attempts had been met with higher rates and didn't meet the board's minimum requirements.

She described the 10 bids received as "fantastic results."

Board chair Mark Spurr gave credit to Finance Director Brian Schultz and then-Interim Superintendent Tom Nelson for setting the process in motion at the end of last year.

"This is going to save the taxpayers a bunch of dough," said Spurr. He called the low interest rates a "silver lining" of the bad economy.

The reduction in bond payments will first be reflected on taxes payable in 2014, according to Schultz. 

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