A Savings to Selah Taxpayers
Selah School District to Refinance Bonds—Taxpayers Benefit!
Here is some good news for Selah taxpayers—they will be saving money!
In a plan to take advantage of low bond interest rates, the Selah School District is pursuing a sale of bonds as authorized by the District’s Board of Directors at its December 9th meeting. The sale, which is planned for February, will refinance voter approved bonds issued in 2012 for the construction of a new Selah Middle School and the remodeling and improvements to Selah High School. The actual interest rates will not be set until the bonds are sold. However, it is anticipated that the lower rates, which will fall below voter expectation, will likely result in savings of millions of dollars for Selah taxpayers.
According to Selah Superintendent, Shane Backlund, the District is pleased that patrons will benefit from the refinancing of the bonds.
“The last couple of years have been challenging times,” said Backlund. “This is a great opportunity to demonstrate good fiscal stewardship and save our taxpayers a significant amount of money.” Backlund also emphasized that the anticipated savings will go directly to taxpayers through lower future tax collections.
Chris Scacco, Associate Superintendent for District Operations, said that although there has been substantial volatility in the bond market due to COVID-19, the interest rates on these types of bonds have returned to near historic lows. Scacco says this is a very good time to refinance eligible bonds to provide savings to District taxpayers.
“The District has been monitoring market conditions closely over the past two years to identify the best opportunity to refinance the 2012 bonds,” said Scacco. “We are hopeful that we will be able to provide significant savings to our District taxpayers.”
Scacco also explains that under IRS rules, this is the first time these bonds are eligible for a refinancing using lower tax-exempt bonds so now is the perfect time to act for the betterment of Selah patrons.
“Over the years the Selah School District has continuously benefitted from the support of its patrons,” said Scacco. “We appreciate how the community has consistently been committed to supporting our students and schools in order to maintain a strong educational system. We are pleased to pass on this savings to our patrons.”