— from Eric Webb, Orcas School District —
Thanks to the generosity of our community, the Orcas Island School District was given the authority to sell $10.8 million in bonds to finance much needed improvements to our schools, but on Monday we only sold $10.2 million worth.
Why? Because that was all it took to raise the $10.8 million we needed.
How was that possible? The combination of our healthy fund balance and the finance and management team’s persuasive presentation to Moody’s Investors Services two weeks ago, led to an increase in our bond rating to Aa3 – a two step improvement. That higher rating increased the desirability of our bonds and allowed our agent, Piper Jaffray, to sell them at a better price and interest rate.
What does that mean for our community? It means that taxpayers only have to repay $10.2 million in bonds, not $10.8. This translates into a tax rate that is 7 cents lower than promised and a savings of more than $1 million over the life of the bond.
Happy holidays to all and sincere thanks for your strong support of our schools!
