’Tis the Season to Save the Community Tax Dollars!

It seems like every bit of financial information we hear in the news is negative. “Fuel prices increase”, “unemployment rates are up” and “the state’s revenues are down” are common headlines we read. Well, here is a piece of positive financial news! Because of the favorable bond market, the district just completed the refinancing of $10,000,000 of the 2001 $31 Million Bond Issue. This refinancing results in $649,582 in savings for HSPS tax payers!

The Refunding Bonds, issued by Security Assurance Inc., were sold on the market on November 28, 2006. As part of the refunding process, Moody’s Investors Service reviewed the underlying credit rating of the School District and upgraded and affirmed their rating of “A2” (one of the highest ratings!). In its report, Moody’s attributed the rating to the School District’s growing tax base, favorable location, and satisfactory financial position. The Refunding Bonds have a true interest cost of 4.12% and refinancing will lower the School District’s debt service requirements by $649,582 over the next 21 years. Should the financial conditions continue to be favorable, we will consider refinancing an additional portion of the 2001 Bond Issue in January or February. So enjoy this bit of good financial news this Holiday Season!