Whitefish refinancing saves money on interest rates

 Whitefish School District will pass on savings to taxpayers after the district recently refinanced bonds in the elementary district and completed financing a $14 million bond issue for high school reconstruction.

Last week, the elementary district refinanced $5.79 million in outstanding bonds issued in 2003 and 2004, reducing the original interest rate of 3.74 percent to 2.06 percent according to a news release from the district.

Elementary district taxpayers who are owners of a home valued at $200,000 would see annual taxes reduced by about $3.82.

Elementary district taxpayers will see lower levies on the bonds in the 2013-14 fiscal year, extending through final maturity in 2022.

The overall debt services savings is $702,926.

The district also took advantage of savings with the bond funding approved in March to renovate Whitefish High School.

By splitting the $14 million bond into two series — a 2012 series issued in June for $10 million and a 2013 series for the remaining $4 million — the district realized interest cost advantages for bank-qualified bond issues at or under $10 million per calendar year.

The $14 million in bonds have a combined average interest rate of 2.62 percent, approximately .88 percent less than the original estimate presented to voters during the election.

High school district taxpayers can expect to see a small reduction in property taxes.

Owners of a $200,000 home can expect the school project to cost them $52.44, down from the $57.50 amount estimated earlier.

Both the elementary and high school districts have received an “A+” credit rating.