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July 30, 2015

School bond sale yields lower than projected tax rate

Kennewick School District took advantage of low interest rates and buyer demand in July when it sold $89,500,000 of bonds for school construction projects.

The district ended up selling the bonds at an interest rate of 3.19 percent, as compared to a projected rate of more than four percent. The district’s excellent financial management, growing tax base, and moderate debt levels were key elements contributing to the district’s ability to secure a high bond rating. The bond rating is also credited with the high number of investors purchasing the bonds and overall low borrowing cost to taxpayers.

“When we were ready to sell the bonds, we were a bit surprised that there was more than twice the demand for Kennewick School District bonds than we had bonds to sell,” stated Superintendent Dave Bond. “It’s a sign that Kennewick has a reputation for solid fiscal management and delivering on its promises.”