Bond refunding to save Lindbergh taxpayers $1.5 million

Refunding saves $500,000 more than original projection

By Mike Anthony

Lindbergh Schools taxpayers will save more than $1.5 million with last week’s refunding of general obligation bonds originally issued in 2009.

The savings to taxpayers totals more than $500,000 over the original estimate of roughly $1 million, Chief Financial Officer Charles Triplett told the Board of Education Sept. 8.

Earlier that day, the district sold $9.865 million in bonds to refund bonds issued in 2009 that carried an interest rate of 4.5 percent.

The Board of Education voted unanimously to adopt a resolution approving the sale of the bonds to Piper Jaffray of Kansas City. The company’s true interest cost — a combined measure of the interest and underwriting fees — of 2.386710 percent was the lowest of nine bids submitted, according to Triplett.

“… These bonds were originally sold at a 4.5-percent interest rate, so it almost cut the interest rate in half …,” he said, adding the savings to district taxpayers totals $1,556,007. “We were hopeful of getting $1 million, so the $1.5 million is just extra good news for us …”

Interest rates ranged from Piper Jaffray’s low bid to 2.650479 percent from Vining-Sparks IBG, Limited Partnership of Chicago. The difference in savings be-tween the low bid and the high bid totaled $335,230.05.

District taxpayers are the sole beneficiaries of the savings because the more than $1.5 million in savings will not be collected from them, and the district’s debt-service tax rate is set to collect only the revenue necessary to retire the bonds, according to Triplett.

By taking advantage of lower interest rates and refinancing bonds in 1998, 2001, 2004, 2008, 2010, 2012, 2013, 2014 and 2015, the district saved taxpayers a total of $10,408,661, the CFO noted.

Moody’s Investors Service reaffirmed Lindbergh Schools’ Aa1 rating on the 2009 general obligation bonds.