This post was contributed by a community member. The views expressed here are the author's own.

Schools

'Sweetheart of a Deal' Saves Taxpayers $1.2 million

Lindbergh knocks one out of the park for taxpayers as savings total more than double previously anticipated from Tuesday's bond refinancing.

Lindbergh School Board has given local residents a “sweetheart of a deal” for Valentine’s Day as the refinancing of bonds will save taxpayers more than $1.2 million in property taxes.

The savings stem from refinancing more than $9 million in bonds first issued in 2003 to fund construction projects in the district.

Competitive bidding coupled with a 44-year low in interest rates more than doubled the expected savings when the bonds were sold on Tuesday, Lindbergh Chief Financial Officer Pat Lanane reported to the board during its meeting that same day at the Early Childhood Education Center.

Find out what's happening in Affton-Shrewsburywith free, real-time updates from Patch.

Lanane said the sale of the bonds was unusually exciting with him and the district’s financial advisor Joy Howard with WM Financial Strategy shouting with glee while watching the sale’s success.

“To use a baseball analogy, sometimes you are just hoping to get a solid base hit. In this case, though, we not only knocked one over the fence but out of the park,” Lanane said.

Find out what's happening in Affton-Shrewsburywith free, real-time updates from Patch.

While district officials previously anticipated savings of about $600,000 in lowered property taxes, the refinancing will actually save taxpayers $1,244,242 in property taxes.

Lindbergh Board President Vic Lenz continued the baseball analogy and praised Lanane and Howard for “winning the World Series.”

The measured saved taxpayers about 12 percent in interest cost until the bonds mature in 2023. Lanane previously advised the district to pursue refinancing even if the anticipated savings were 3 percent in interest costs -- about $250,000.

Board member Vicki Englund said sale was a “sweetheart of a deal” for taxpayers.

“This was excellent timing…,” she said. “The end result is something to be very proud of.”

The district’s high financial rating drew 14 bidders to the sale, an “almost unheard of number,” according to Lanane.

This was the sixth time the board has refinanced boards since 1998. In total, those refinancing have saved taxpayers more than $5 million.

The district is now exploring whether to refinance bonds issued in 2004, though, that sale will not be possible until the end of the year.

We’ve removed the ability to reply as we work to make improvements. Learn more here

The views expressed in this post are the author's own. Want to post on Patch?

More from Affton-Shrewsbury