The Columbia Heights School Board on Nov. 13 unanimously approved the sale of general obligation school building refunding bonds.
Bill Holmgren, director of finance and operations, explained that by calling for the sale, the district will be in a position to reduce its interest payments on the bonds and as a result, reduce future school levies.
The bonds have been in place since 1998, which are paying for some rebuilding and the construction of the District Center, Holmgren said.
The district is currently paying about a 4-percent interest rate on the bonds. By reselling the bond issue for the remaining 10 years, the district is estimated to pay about a 2.4-percent interest rate.
Over the next 10 years, the district is expected to save property owners approximately $2.6 million, which is about $265,000 annually.
“It really is considerable savings going forward for our taxpayers,” Holmgren said.
“It will not help us for this levy you’re voting on next month, but it will in years after.”
In December, the School Board is scheduled to vote on the sale of the new bonds that would be awarded to the lowest bidder.
The new proceeds that will pay off the old bonds will become available in early January of next year.