A refunding of Osakis School District's outstanding bonds was approved by the School Board at its Monday, Sept. 10 meeting, following a presentation by Shelby McQuay, municipal advisor for Ehlers, Inc.
The refunding process will pay off the Feb. 24, 2009 district issued General Obligation School Building Bonds in the amount of $5,740,000, and in the process reduce the interest rate, thus saving the taxpayers an estimated $420,000.
"The saving goes directly back to the taxpayers for the debt levy," McQuay told the board.
The 2009 bonds are payable at an interest rate of 3.25 and 4.05 percent. The current interest rate is estimated by McQuay at between 1.7 and 2.5 percent.
This is the second refunding for the 2009 bonds, McQuay reported, providing for a better interest rate.
The bonding call date will be Feb. 1, 2019, but the 2018 refunding bond bidding will be held Oct. 3. The bonds will be sold on Nov. 8. The funds realized will be deposited, resulting in earning $25,000 in interest from Nov. 8, 2018 to Feb. 1, 2019, which will be used to reduce the bond size or lower the rate.
Osakis has a current Triple AAA rating, an A+, McQuay said. "This is an opportune time to reissue these bonds."