Taxpayers Will Save Money Thanks To Low Interest Rate On Bonds
The first set of bonds have been issued from the 158 million dollar package approved by voters last November for the Missoula County Public Elementary and High schools. According to Missoula County Public School District One Superintendent Mark Thane, the interest rate on the bonds is much lower than was expected.
“When we promoted the bond election with voters we were projecting an interest rate of approximately 3.75%, so when we calculated the potential impact of those bonds on the tax payer that’s the rate we used,” said Thane. “We, on Tuesday, sold 80 million dollars worth of bonds at an interest rate of 2.71%.”
Thane says a lower interest rate means a lower burden on taxpayers.
“The interest savings could amount to somewhere in the neighborhood of 6 million dollars on the Elementary side and 3 million dollars on the High school side,” said Thane. “The total project budgets remain just as we identified them in the information we shared with the voters, but realizing the benefit of a lower projected interest rate will favorably impact the taxes of Missoula citizens.”
This is just the first wave of bonds to be sold, more will be sold in two years, which, if higher or lower than projected, could also impact the total amount saved.