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March 16, 2016

Bond refinance saves taxpayers millions

Kennewick School District has saved taxpayers $4.2 million in interest payments over the next 12 years by converting a portion of the capital bonds issued in 2009 to lower-interest rate bonds.

The district converted $36,865,000 of its bonds from an average interest rate of 5.0 percent to 2.21 percent.

The combination of low interest rates and the district’s bond rating of Aa2 from Moody’s Investors Service contributed to the overall savings. The district received the high rating due to its strong financial position, sizeable tax base, steady enrollment growth, and healthy liquidity.