Yakima School District Saves Taxpayers Over $5 Million
The Yakima School District has successfully taken advantage of current low bond interest rates to save
taxpayers over $5 million over the next 10 years. A sale of bonds authorized by the District Board of
Directors refinanced bonds issued in 2012 that financed District construction projects. The overall
borrowing rate for the new bonds sold on February 23 is a very low 1.90%, compared to the rate of
5.00% on the old bonds.
“This is a great opportunity to save our taxpayers a significant amount of money,” said Superintendent
Trevor Greene. He emphasized that the anticipated savings will go directly to taxpayers through
lower future tax collections. “This is money that will now stay in our community and local economy,
rather than go to pay interest on bonds
Although there has been substantial volatility in the bond market over the past couple of months, the
Interest rates on these types of bonds returned to near historic lows according to Becky Nissen, the
District’s Executive Director of Finance. “We have been monitoring the market closely over the past two
years to identify the best opportunity to refinance the District’s 2012 bonds; we are very happy to be
able to provide significant savings to the district taxpayers,” said Nissen. “This was our earliest
opportunity to refinance these bonds. When added to other recent refinancings, the District’s total debt
payments have been reduced by over $8 million,” notes Nissen.
As part of the sale, the District received a strong credit rating of “Aa3” from Moody’s Investors Service.
Moody’s noted the District’s “conservative fiscal management and community support for operating
levies” as credit strengths. “This refinancing is one more way to demonstrate to our community our
commitment to fiscal stewardship of the funds entrusted to us.” Said Superintendent Greene.