School District Saves Taxpayer Money
Launch the media gallery 1 playerThe U.S.D. #343 Board of Education voted to refinance the District's outstanding general obligation bonds during their meeting on Monday, May 11th. As a result, the district will save more than $258,000 in interest on their bond obligation over the next 5 years.The bonds were refinanced due to the recent drop in interest rates. The District was paying an interest rate of 3.4% on bonds. However, with refinancing, the new rate will be .94%. We have seen many challenges and hardships due to the COVID-19 pandemic. It is nice to find a situation that will benefit the District and more importantly the taxpayers during this tough financial time.
The original bonds were issued in 2005 to pay for upgrades to District facilities including building Perry-Lecompton Middle School. Bond issues are needed by school districts to complete large scale projects that cannot be completed with capital outlay or general fund money. Without bond issues, schools would not be able to address large remodels, new facilities, or the need for additional classroom space.
The $258,000 in savings can only be applied to savings on the bond issue itself. Savings cannot be transferred to other areas of the budget to offset budget reductions or general fund expenditures. Savings in this project will allow U.S.D. #343 to finish the bond payment one year earlier than originally planned. The payoff will be moved from the year 2025 to 2024. By refinancing at this opportune time, the school district is working to be responsible with school resources and taxpayer money.