Interest Rates Bring Payment Down
KSAL Staff - April 3, 2014 8:56 am
A change in interest rates means that the USD 305 school bond issue, if passed, would not cost tax payers as much.
According to the district, based upon current interest rates, the projected mill levy for the repayment of the bonds is 1 mill lower. For taxpayers, this reduces the monthly increase for an owner of a $100,000 home to $3.55 (from the original $4.50).
The mill levy could be set at 15.219 mills through 2022 instead of the originally projected 16.219 mills. The mill levy would stay near the 15.219 mills until starting to drop in FY 23. It would still be paid off in FY 34.
The District may or may not sell all the bonds at one time. The actual interest rates can fluctuate up to the time at which the bonds are sold to investors. Local tax payers will benefit from the lowering of interest rates in recent weeks.
The updated mill levy is based upon improved interest rates throughout the past several months. Additionally, a conservative estimate of interest rates was used in the analysis for calling the bond election. A standard approach, this allows for a fluctuation in rates before the bonds are approved or sold.