Brandywine refinances, taxpayers to benefitPublished 2:57pm Wednesday, March 13, 2013
Brandywine homeowners could pay fewer taxes this year thanks to a recent resolution by the Brandywine Community Schools Board of Education.
Last week, the board refinanced $2.24 million worth of bonds, dropping the interest rate from 4.48 percent to 0.57 percent.
The result is a savings of $173,448 in interest, meaning the district has to collect that much less from taxpayers.
“Anytime you can give something back to the people that support us it’s a big thing — it’s important,” Jarpe said.
The community approved bonds in 2003 and again in 2007 in special elections. The funds from these bonds helped update all of the district’s buildings.
Taxpayers are assessed a certain amount every year, depending upon the value of their homes and the interest rate on the bonds.
There were 10 banks and financial investment firms who bid on the district’s bonds. The bid with the lowest True Interest Cost (TIC) was from a financial firm from Kansas City, Piper-Jaffrey.
Jarpe said these factors contributed to the successful sale:
• The school board has a sound budget, with a policy of at least a 20 percent fund equity on hand to address unexpected costs.
• The community is very supportive of the district.
• The district has a stable board and administration with very little turnover.
Jarpe said Moody’s Investor Service of New York rated the bonds very favorably.