Cascade School District refinances bonds, projects $3.77 million in savings

LEAVENWORTH — Cascade School District recently took steps to reduce its existing debt and save taxpayers $3.77 million over the next 10 years.

The district said it successfully completed a $23.29 million public sale of its Unlimited Tax General Obligation Refunding Bonds on June 24, refinancing the district’s 2016 bonds. 

The CSD board approved the issuance of the refunding bonds at its April 27 meeting. The district has been monitoring bond market conditions, and lower interest rates allowed it to exceed its savings target. Interest rates averaged 3.13 percent on the new bonds, compared with 4.8 percent on the refinanced debt.

The district said it was able to achieve a strong result thanks to its re-affirmation of its “A1” rating by Moody’s Ratings on May 22, as well as the district officials’ decision to participate in the Washington State School District Credit Enhancement Program (rated “Aaa” by Moody’s Ratings). Program participation is dependent upon voter approval and provides investors with surety for the repayment of the bonds.

Superintendent Dr. Tracey Edou emphasized that the savings achieved now will offset future tax collections, reducing the overall tax burden to district residents.

“Cascade’s school board and administration have worked diligently to secure all the pieces necessary to make this a successful bond sale. Success [is] measured by the ultimate borrowing cost for the bonds. The lower the cost, the lower the tax burden incurred by our community. All our efforts strive to provide a result that truly honors the community’s support,” said Edou.