Monticello board ratifies bond refunding; advisors report roughly $490,000 in savings
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Summary
The Monticello School Board ratified a partial refunding of 2016 general obligation bonds (maturities 2027–2034) after advisors reported lower-than-expected interest costs and a projected savings of about $490,000 over the refunded maturities.
The Monticello School Board on Jan. 6 ratified a resolution approving the issuance and sale of General Obligation School Building Refunding Bond Series 2026B, following a presentation by the district’s financial advisors and Director of Business Services Tina Burkholder.
Beth Downs of Ehlers told the board the district received 14 competitive bids and that presale estimates had put the interest cost around 2.98 percent; the sale came in at about 2.45 percent. Downs said the district did not refund every 2016 maturity but targeted maturities through 2034. She described a reduction in the new bond issue size (discussed in millions) and presented a debt-service comparison showing a more level tax-rate profile through 2031 with a drop in 2032.
As a result of the sale mechanics and premium applied by the underwriter, Downs reported the projected savings over the refunded maturities increased from an earlier estimate of roughly $125,000 to about $490,000. Board members asked whether the savings could be returned to taxpayers now; advisors and staff clarified that the change affects debt-service levies (used to pay bonded debt) and cannot be transferred to the district’s operating levy or general fund. The presenters noted the most visible taxpayer benefit is projected to appear in taxes payable 2032, when the debt-service tax rate is expected to drop.
The board approved the ratifying resolution by unanimous voice vote (moved by Jeff Hegley, seconded by Casey Root). Chair Jamie Seben thanked staff and advisors for the results and said the outcome represented a significant financial benefit to taxpayers and the district.
