Cliff Buchan
News Editor

If all goes according to plan, a bond refunding plan in ISD 831 could save property taxpayers $2.2 million or more.

Larry, Martini, director of business affairs, received the green light from the school board Thursday, Dec. 2 to explore a refunding program for two outstanding series of bonds. The board voted 7-0 to continue the planning with the goal of final action in January.

Under the plan, the district would issue bonds totalling $36.6 million in early 2005. The advance refunding of general obligation bonds program is being guided by financial experts from Springsted, Inc., Martini explained.

The funds would be used to retire two outstanding bond programs ó the 1997 technology bond issue and the 1998 bond issue that provided funds for the construction of Century Junior High School and other additions in the school district.

The early payment date for the technology bond issue is 2007 while the early payment date for the 1998 issuance is 2008.

Under the district proposal, if market conditions remain favorable, the $36.6 million in bonds would be sold and placed in an escrow account with the interest on the reinvested dollars allowed to build, Martini said. The outstanding bond would be paid off in 2007 and 2008.

ìTheyíll grow with interest,î Martini said of the escrow accounts to retire the two bond issues. The business director said the program can be scuttled if market conditions worsen and it appears unlikely taxpayers will stand to see any benefit from the refunding.

But Martini said the $2.2 estimate ó a figure that includes all bond issuance costs ó could be conservative. If that is correct, taxpayers will see an even greater decrease in the debt service commitments in ISD 831.

ìMarket conditions should mean at least the $2.2 million savings and possibly more,î Martini said in an interview.

If the district can find ways to save taxpayer dollars, it makes sense, Martini added.

The original technology bond issue was for $6 million while the Century building bond levy was a $60 obligation to district taxpayers.

With the help of Springsted, the school board should be in a position to consider the formal resolution authorizing the bond sale at its work meeting session Thursday, Dec. 16. The bonds would be up for rating the week of Dec. 27.

Sale and consideration and award of the bonds would go before the school at its first meeting in 2005, Thursday, Jan. 6. If the plan goes according to schedule, the district would have receipt of the bond proceeds early in February.

The estimated $2.2 million in reduced bond payments would be of direct benefit to property tax payers in the district through a reduced annual payment for bond indebtedness, Martini said.

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