Bonds will save school taxpayers $400,000
The Osakis School Board ratified the sale of General Obligation School Refunding Bonds at its Tuesday, Oct. 9 regular meeting, at an interest rate of 2.6 percent. This will result in a savings to district taxpayers of nearly $400,000 over the next eight years.
Superintendent Randy Bergquist told the board that the Osakis School District was rated very well, receiving a Triple AAA, A+ rating.
Shelby McQuay, the district's advisor from Ehlers, Inc., had reported to Bergquist that the bond sale had received nine bids which was higher than the hoped-for three bidders. The large number of bidders for the bond sale shows the quality of the bonds and is a credit to the school district.
Interest rates have increased, which will result in lower than projected savings, but will still amount to $390,000 over the next eight years, a savings of about $54,400 per year.
The bonds will be sold on Nov. 8, and will be deposited in savings until Feb. 1, 2019, resulting in earnings of $25,000 in interest, which will be used to reduce the bond size or lower the rate.
This bond sale will pay off the Feb. 24, 2009 bonds, which were originally $6.7 million, with an outstanding amount of $5,995,000.