Kennewick saves $4.2 million in refinancing school bonds

The Kennewick School District recently saved about $4.2 million by refinancing some of its bond debt, but that won’t necessarily lead to a big dent in anyone’s tax bill.

The district converted $36.9 million worth of bonds approved by voters in 2009 to an interest rate of 2.21 percent, down from an original interest rate of 5 percent, a release said.

The refinancing was made possible through low interest rates, as well as the district’s high bond rating. The savings will be realized over the next 12 years as the district pays less to cover the interest on the bonds.

While the savings is ultimately sound financial practice and good for taxpayers, district officials said its not something that will be easily reflected in the taxes that property owners pay. Any reduction to taxes won’t show up for years and when it does, is likely to to take only a cent or two per $1,000 in assessed property value off a tax statement.

This story was originally published March 25, 2016 at 8:52 PM with the headline "Kennewick saves $4.2 million in refinancing school bonds."