At a special meeting of the Lopez Island School District Board of Directors on April 16 the Board approved the selling of $1.6 million worth of new money capital projects bonds, as approved by the voters in February. At the same time, and in the same process, the District also refinanced its remaining approximate $1.4 million debt from a 1997 bond. As a result, the overall tax rate was actually reduced from the low tax rate projected by the District in bond presentations leading up to the February elections. The results of that election drew the highest approval percentage in the state for school district bond proposals in that February’s elections. The new projected tax rate has been dropped to $.28 for the combined new and refinanced bonds.

The refinancing and the new bond sales were enhanced by the District’s successful efforts to secure an upgraded underlying bond rating from Moody’s Investors Service. With the assistance of Seattle Northwest Securities Corporation, the District’s bond underwriter, the District was able to secure an “A2” underlying rating from Moody’s. This strong rating, coupled with the District’s demonstrated effective fiscal practices and the community’s healthy assessed valuation, resulted in locking into a low interest rate of 3.2% for the combined new and refunded bond sales.

“The rating reflects the District’s sustained tax base growth, high wealth levels, consistently healthy financial position, and very limited debt exposure,” stated Moody Investors Service analyst Jeff Moody in a report he submitted to the District.

The low interest rate, market timing, and the strength of its fiscal practices all helped the District realize an approximate $75,000 savings in its refunding efforts. This savings will be directly passed on to taxpayers through reduced tax levies over the next five years. The District projects payoff for new and refunded bonds in 2016.

“The District is very pleased that its efforts have yielded a reduced tax rate and a tax burden savings for these bonds,” stated Superintendent Bill Evans. “It is great to be able to reward the community for its strong support of its schools by not only fixing up and enhancing the physical plant, but also saving money for the taxpayers in the process!” Evans said.