Archive for Wednesday, March 19, 2008

Board’s vote approves refinancing on bonds

March 19, 2008

In a special meeting Wednesday, March 12, the Tonganoxie School Board unanimously voted to accept a refinance building bonds that would refund district taxpayers for a tax filing error Superintendent Richard Erickson made last year when filing the 2008 budget information to Leavenworth County.

Rodger Edgar of George K. Baum and Company said that the district got an interest rating of between 5 and 5.1 percent, which he thought was good for not having paid to get a credit rating from Standard and Poor's or Moody's Investors Services.

"The bonds did not have a credit rating, but the interest rates at which we sold the bonds were in between A and AA levels," Edgar said. "Even though we didn't have a rating we still got a great interest rating. You should be proud of your credit strength and reputation in the market."

The plan would reduce district bond payments by $185,000 each in 2009 and 2010 and by an additional $45,000 in 2011 to refund taxpayers for any interest.

Not present at the meeting were school board members Doug Tate, Darlyn Hansen and Diane Truesdell.

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