The Ignacio School Board recently announced the district successfully completed a second refinancing of the 2012 bond issue. The first was completed in October 2016 and the most recent was closed on June 22.
The 2017 refunding has future savings of $350,375 during the next 11 years, according to a press release from the district. The 2016 refunding resulted in future savings of $848,167 over the 15-year term of the bond issue. The district refunded $12.8 million of bond principal that carried interest rates from 4 to 5.25 percent.
By taking advantage of lower interest rates, the school district is able to reduce or lower future payments of debt service. This benefits district taxpayers by reducing the amounts paid by its patrons. The district could possibly refund, assuming that a lower interest rate could be achieved, another $7.74 million in principal that are at a 3 percent interest rate.
“This is great news for the community because it will save taxpayers taxes in the future and the bonds could be retired sooner than expected,” Board President Robert Schurman said.
With a school levy of 15.535 mills for property taxes, Ignacio schools has the 11th lowest levy of Colorado’s 176 school districts.
