Gering Public School taxpayers will get a bit of a break, as school district officials say they’ve refinanced the 2014 construction bonds used to build Lincoln Elementary School.
On July 24, Gering Public Schools sold just over a $5 million refinancing bond issue with a net interest cost of 2.69%, which reduces the District’s bond payments by over $250,000. The original General Obligation Bonds carried an interest rate of 3.17%.
“The refinancing indicates the concern the Board of Education has regarding keeping the tax levy for Gering School’s bonds as low as possible,” says Superintendent Bob Hastings. “The refinancing comes at a time of historically low interest rates for tax-exempt municipal bonds so the timing for the sale of bonds is particularly good. $250,000 is a lot of money, so hopefully our taxpayers will be pleased.”
An important part of the refinancing was an upgrade of the District’s bonds from “A2” to A1” by Moody’s Investor Services. In upgrading the District’s bond rating Moody’s cited the District’s tax base and sound financial condition. “Upgrading our bond rating to “A1” is recognition of the hard work the Board of Education and Administration has put into solidifying Gering Schools financial position” says Tim Meisner, Business Manager for the District. “We will continue to find ways to keep our District on strong financial footing, such as refinancing our bonds when lower interest rates allow us to reduce our debt,” Meisner shares.
RBC Capital Markets of Denver, the underwriter of the 2014 bond issue also served as the underwriter for the Series 2019 refinancing bond issue. Gilmore and Bell of Omaha served as bond counsel, drafting the documentation necessary to complete the transaction which closes on August.