Farmington Schools Taxpayers Save $1 Million with Bond Refunding
The move will result in lower debt payments on residents' property tax bills.
Farmington Public Schools taxpayers will save more than $1 million in interest expenses, after a successful sale of 2013 Refunding Bonds.
According to a district press release, $11,180,000 bonds were issued to refund the School District’s outstanding 2004 School Building and Site bonds and to pay the costs of issuing the bonds. Borrowing at lower rates will mean lower debt payments, and a savings of $1,092,859 over the next six years.
In preparing to sell the bonds, the district and financial advisor Stauder Barch & Associates, Inc. asked Moody’s Investors Service, Inc. to review the district's bond rating. Moody's assigned the outstanding underlying rating of "Aa1", citing the district's affluent tax base, management commitment to control financial position and modest debt burden.
“In light of the interest rate opportunities, it was the fiscally responsible thing to do to help save our taxpayers some of the cost,” said David Ruhland, Associate Superintendent of Instructional Support Services.