The Montrose School District entered the bond market last week to refinance $6,545,000 of 2002-2003 bonds, originally issued as a component of the November 5, 2002, voter-approved Sales Tax/Bond Issuance measure to fund capital improvements.
The refinancing will allow the school district’s taxpayers to generate a savings of approximately $60,000 per year between 2011-2022, and will not extend the life of the original bond issue. The Series 2011 tax-exempt refunding bonds, with an average interest rate of 2.05 percent, will replace the previous average interest rate of more than 4.50 percent.
The District received an upgrade from “no underlying rating” for the 2002 and 2003 bonds, to an underlying rating of “Aa3,” which reflects the District’s sound financial management and strong property tax base.
The voter-approved funding for the capital improvement projects included issuance of $11 million in bonds, and a half/cent sales tax with the City of Montrose that sunsets, or terminates, at $12 million. Improvements completed under the original scope of the project include the new classroom wing at Montrose High School; the new Johnson Elementary School; the classroom wing at Cottonwood Elementary School; the new classroom wing, kitchen/cafeteria and remodel of thefront lobby of Olathe Middle/High School; the new classroom wing at Olathe Elementary School; the remodel of the north-wing of Centennial Middle School; the new classroom wing at Northside Elementary School; the new classroom wing and renovation of Oak Grove Elementary School; and the new Olathe High School gymnasium.
Because all of these projects came in on-time and on-budget, additional funding was obtained by the District, including an interest-free QZAB loan. Thanks to that loan, additional projects now completed include the remodel of Pomona Elementary School; site improvements at Olathe High School and Pomona Elementary School, including new outdoor classrooms, a new warehouse and and a combined Exceptional Student Services/Central Office building and a new cafeteria at Cottonwood Elementary School.