Verndale School Board: Bonding against state revenue could save money
by Trinity Gruenberg
The Verndale School Board held its regular meeting on September 13. Jeremy Schwartz joined in via Zoom.
Bond Refunding
Greg Crow with Ehlers discussed bond refunding options that will save the district and taxpayers money.
This would refinance existing debt. The school receives $380 per student for Long Term Facilities Maintenance (LTFM). The option they have now is they can bond against that revenue from the state. Including the 70 percent ag credit, the levy would look the same, but taxpayers would pay less. They would be borrowing against the money they would receive in the future.
Some of the LTFM funds are for health and safety, which the dehumidification project would fall under. They are permitted to make a levy to pay bond payments and with this item, the state would pay about a third of the payments due to the ag credit. The savings from the refunding of the bond would help pay for the dehumidification project as well.
The Verndale School is one of the few that only levies what they need as opposed to going for the maximum levy. . .
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