4J Bond Refinancing Will Save Taxpayers $4 Million
Savings seen in reduced tax levies; not available for school expenses
Oct. 4, 2012 — Low interest rates aren’t just a help to homeowners. They’re a boon to taxpayers as well. In a proactive step to save money for property owners, the Eugene School District has refinanced bonds issued in 2003 and 2005 in order to take advantage of lower interest rates.
The refinancing will save the district’s taxpayers more than $4 miilion over the next 13 years. These savings flow directly to taxpayers through reduced tax levies and are not available to be spent by the school district. This is a direct savings to community members in the form of taxes they expected, but will not have to pay.
The Eugene School Board approved the issuance of $37,405,000 in refunding bonds. District finance staff have been closely monitoring bond market conditions and and recent low interest rates allowed the district to not just meet but exceed its savings target. Interest rates averaged 1.92% on the new bonds compared to 4.43% on the old debt.
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