Cascade School District moves to refinance bonds, cut costs

LEAVENWORTH — Cascade School District is looking to refinance a portion of its 2016 voter-approved bonds, a move that could result in potential taxpayer savings.

The bonds become eligible for refinancing June 1, allowing the district to replace higher-interest debt with lower rates if market conditions hold. During its April 27 meeting, the CSD Board voted to move forward with the process.

According to Trevor Carlson, Piper Sandler’s Managing Director of Public Finance, the district can potentially lower interest rates from the current average of 4.79 percent to 3.11 percent, based on the district’s strong credit standing and current market levels. The refinancing would not extend the repayment timeline, which is scheduled to end in 2035.

“That interest-cost savings, again, is then taxpayer savings,” said Carlson during a presentation to the board.

This estimation is similar to the district’s move to refinance 2015 bonds last year, which reduced average interest rates from 4.68 percent to 3.15 percent, according to district officials. The move resulted in saving taxpayers approximately $1.5 million over 10 years.

“It's not that often that you can actually reduce taxes,” said CSD Superintendent Dr. Tracey Edou. “And it’s the second year in a row that we might have the opportunity.”

According to Carlson, the refinancing of 2016 bonds has the potential to save approximately $2.2 million in present day value, or $3.7 million over the life of the debt. However, he noted that conditions could change in the coming weeks. For that reason, the resolution includes a minimum savings threshold to justify moving forward.

“We have one bite at the apple here, so we want to make sure those savings are significant. We'll do everything we can to maximize that,” said Carlson.

The district plans to have its credit rating reaffirmed by Moody’s Ratings this May ahead of a potential bond sale in early June. Projected savings will be updated at the time of the sale.

Taylor Caldwell: 509-433-7276 or taylor@ward.media