District Receives Excellent Interest Rate on G.O. Bonds

March 22, 2012 (Independence, Iowa) – The Independence Community School District (ICSD) has received great news regarding the new Jr./Sr. High School building. Matthew Gillaspie, a representative from Piper Jaffray & Co., recently explained how the low 2.89% interest rate issued on the sale of $10 million general obligation bonds will save district taxpayers a substantial amount of interest over the life of the bond repayment.

At the time of the 2011 bond vote, the District estimated the interest cost for the $10 million portion of the entire $12.48 million to be approximately $6,052,500. Due to the very low interest rates the District was able to obtain, the actual interest cost for the $10 million portion is $3,065,045. The end result is that the property tax levy on district taxpayers will be substantially less over the life of the bond repayment.

“We are very excited with the low interest rates because it reduces the property tax burden on taxpayers, “said Board President Brian C. Eddy.   Russell Reiter, Superintendent, stated “One of the advantages of passing the bond for a new JR / SR high school in 2011 was  the ability to take advantage of low interest rates, and we ended up getting even better rates than expected”.


Media Contact:
Jenny Yoder, Fusion Forward