The Spring Lake Park School Board voted May 9 to award the sale of general obligation school building refunding bonds and save taxpayers $1.8 million.
This is the third bond refunding the district has pursued in the last three years equating to a total of nearly $12.3 million in debt service savings.
“The savings do get passed along directly to taxpayers,” said Amy Schultz, director of business services.
Savings exceeded estimates with interest rates dropping in April, according to Joel Sutter, senior municipal adviser with Ehlers, the district’s financial consultant.
Forecasts showed the district saving approximately $1.5 million with a 2.55 percent interest rate.
The lowest of seven bidders, Piper Jaffray of Minneapolis, offered a true interest rate of 2.19 percent after adjustments.
Savings are approximately $1.8 million for taxpayers – $180,000 annually through 2028.
The owner of a $250,000 home will see $9 in savings each year. Refundings since 2010 will save that same owner $120 annually going forward, according to district spokesperson Bob Noyed, citing Ehlers calculations.
The School Board voted unanimously to award the bond sale. Board Member Kelly Delfs was absent for the vote.
The sale is expected to close June 8.