Bond sale goes better than expected, NY Mills School District to save $90K
Monday’s New York Mills School Board meeting brought “fantastic news” for the district’s taxpayers.
Actually, it’s just under $90,000 worth of good news.
Jodie Zesbaugh, of Ehlers and Associates, Inc. shared this news in her report of bond sale results: the district got a better deal than expected.
After refunding, the district will save $89,134 on interest for the remaining life of the bond.
These savings will begin making their way back to taxpayers starting with taxes to be paid in 2014 and continuing through 2018 – a difference of about $19,000 per year.
In August, the board discussed refunding the bonds, which will come due this February. Refunding is a process where outstanding bonds can be paid off by issuing new bonds. Marsha Maki, business manager for the district, explained that this is similar to refinancing a mortgage or other loan.
At the September meeting, the board voted to go ahead with the sale.
At Monday’s October meeting, Zesbaugh presented the winning bid from BOSC, Inc., of Milwaukee, Wis.
BOSC offered the lowest interest rate in their bid, at 1.224 percent. Three other firms also made bids.
The closing date for the sale will be Nov. 21.
After closing, proceeds from the sale will be used to pay off the old bonds when they come due in February.
Next fall, according to Zesbaugh, there is another, larger, set of bonds which will be due and eligible to be refunded, as well.
In other news, the board:
-Approved overnight trips for the volleyball and softball teams.
-Approved an assurance of compliance with state and federal law to prevent discrimination.
-Heard comments from Superintendent Blaine Novak on possibly holding a live-shooter training with staff at the school. No students would be present for the exercise, which may be held in the spring.
-Learned about Optional Local Purpose Assessment tests, which most students in the district will take in November and January to prepare for the Minnesota Comprehensive Assessment tests.