The Snoqualmie Valley School District recently refinanced a portion of its outstanding bonds from 2005, in order to take advantage of favorable municipal bond market conditions. As a result, the District was able to secure a total debt service savings to taxpayers of $655,611 over the remaining life of the bonds, for a 15.86% savings on the refunded bonds. Interest rates on the new bonds will average 1.73%, compared to 5.00% on the old bonds.
These savings will flow directly to taxpayers through reduced tax levies and are not available for District expenses.
During the life of a school bond, which is often 20 years, a school district is allowed just one opportunity to refinance, if the district thinks it can secure a better interest rate than when the bond was originally issued.
Superintendent Joel Aune said, "We are grateful to our community for passing bonds and levies that help keep our schools and programs strong and moving forward with improvements. When the markets trend favorably, we look to take advantage of opportunities to save money for our taxpayers. With interest rates dipping to historic lows, this was the time to refinance our bonds to take advantage of those interest rates."
This refinancing effort, combined with refinancing of other bonds completed over the past few years, brings the total net savings to the Snoqualmie Valley taxpayers of approximately $3,980,000 and over 9% savings on approximately $40 million of refunded bonds.