For immediate release 10/20/06
Bloomington Schools refinance bonds, save taxpayers millions
Bloomington taxpayers will be saving nearly $9.6 million in School District levies through refinancing of bonds.
On Oct. 23, the Bloomington School Board awarded the sale of General Obligation School Building Refunding Bonds to Stifel, Nicolaus and Company, Inc. Refunding these bonds is estimated to reduce the annual debt-service levy $33,000 beginning in 2007.
The School Board approved issuing General Obligation School Building Refunding Bonds, Series 2006C, to refund certain maturities of the $33,070,000 General Obligation Building Bonds, Series 2001A, and the $8,600,000 General Obligation Building Bonds, Series 2001B. The resolution authorizes Ehlers and Associates, the District's financial consultant, to begin the process to sell these bonds. Refunding these bonds is estimated to reduce the annual school levy $300,000 beginning in 2012. For the life of these two bonds, the School District estimates taxpayers will save $3.823 million through refinancing of bonds.
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"The refinancing of bonds is much like refinancing a home mortgage," said Les Fujitake, Bloomington Public Schools superintendent. "The District pays off bonds with relatively high interest rates by issuing bonds with lower interest rates.
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"Our School Board has acted strategically to refinance bonds when interest rates dip," he said. "This action results in a lowering of our debt service levy. A lower debt service levy means a lowering of property taxes for Bloomington homeowners and businesses."
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