January 28, 2013
The savings might be enough to make financial analysts beam.
About $9.7 million less in taxes. An interest rate sliced in half.
And enough savings for each property owner in Colorado Springs School District 11 to buy one, maybe two more caffe lattes each year through 2030.
Go ahead, make it Venti — or whatever large cups of coffee are called these days.
Thanks to a bit of financial wizardry, District 11 administrators refinanced nearly $85 million of a $131 million school bond — adding up to one of the district’s largest bond refunds in recent memory, said Glenn Gustafson, the D-11’s chief financial officer.
The interest rate was more than 5 percent when the bond passed in 2006. Now, it’s at 2.16 percent.
That’s $9.7 million in savings over the lifetime of the bond, which paid for Freedom and Christa McAuliffe elementary schools, along with renovations elsewhere. Each year, D-11 taxpayers should expect to pay $650,000 less than expected.
So what kind of tax cut is that for the owner of a $200,000 house?
Roughly $90 in savings — over the next 18 years.
Or $5 a year.