· District takes advantage of historically low interest rates.
· $229,000 in taxpayer savings over 12 year life of bond issue.
Zillah, WA – On September 15, 2011, Zillah School District took advantage of historically low interest rates in the municipal bond market and completed the refinancing of its 2003 voter approved bonds. These original bonds provided for: the modernization of Hilton Elementary and Zillah High Schools and construct and equip a new multi-purpose facility at Zillah Middle School.
The refinancing will reduce debt repayment costs by $229,000 over the remaining 12 year life of the bonds. Working with Martin Nelson and Company of Seattle, the District was able to replace the 4.52% interest rate currently paid on its outstanding 2003 debt with a new rate of 2.29%. This 2.23% rate reduction classified the refinancing at two full percentage points above the superior level of standard industry benchmarks for quality.
In addition to the low interest rate, the District received an inaugural bond rating of “A+’’ from Standard & Poor’s, the highest grade in the “A” category. This rating was based on the District’s manageable debt level, reasonable general fund reserves, established fiscal policies, positive and healthy community relationship and superior management.
