BC News

Bond-rating extension means taxpayer savings
Release Date: Aug. 6, 2007

The district’s sound financial practices have earned a continuation of its A1 bond-rating, a designation that will yield more than $900,000 in taxpayer savings over the life of the bonds used to finance the $93 million building project.

Crediting responsible financial management, Moody’s Investor Services recently notified the district that its A1 bond rating would be extended for 2007-08.

Essentially, this high-quality rating allows the district to sell bonds at interest rates more favorable than were anticipated when voters approved the building plan in December 2003. The resulting savings are passed directly to taxpayers in the form of lower debt service payments over the life of the debt.

For example, the district was able to sell the final $29.4 million in bonds related to the building project at an average interest rate of 4.355 percent, which is less than the 4.5 percent that was originally projected. This translates into roughly $340,000 in savings over the life of these particular bonds.

Overall, the district’s maintenance of a high-quality bond rating is expected to yield $930,000 in savings on the debt of the entire $93 million project.

“Our commitment to prudent and responsible financial management practices continues to pay off,” Superintendent Les Loomis said. “This excellent bond rating will result in direct taxpayer savings on the community’s investment in top-quality educational facilities for its children.”