For the second time in just over a year, Longview School District has refinanced outstanding bonds in order to take advantage of lower interest rates and save taxpayers money.
The refinancing on Sept. 27 will save the District’s taxpayers a total of almost $430,000 during the next four years. Superintendent Dan Zorn emphasized that these savings flow directly to taxpayers through reduced tax levies and are not available for District expenses. “This is a direct savings to our community members in the form of taxes they expected, but will not have to pay,” Zorn said.
When combined with the refinancing last summer, the District will provide taxpayer savings of more than $1.7 million. “This is a good demonstration of sound fiscal management practiced by the District” said Patti Bowen, the District’s Business Manager.
Zorn also notes that as the District voters consider the new bond authorization in November, this result demonstrates that bond interest rates remain near historic lows.
The Longview School Board approving the refunding of bonds at its meeting held on Monday, July 27, 2017. The District has been actively monitoring bond market conditions, and recent low interest rates allowed the District to exceed its savings target. Interest rates averaged 1.49% on the new bonds compared to 4.00% on the old debt.