Bond sale brings millage savings

March 23, 2012 —

Due to lower interest rates, the sale of levied bonds at auction this week resulted in significant savings for Hudson School District and area taxpayers.

The district expected an interest rate of 4.5% to 4.75% on the 4.83 mill levy, but the time between the estimate and the actual sale resulted in significantly lower rates. Taking place in Detroit, the auction resulted in three bids under 3.8%, and the winner, Robert W. Baird and Co., offered an interest rate of 3.02%.

The 1.5% lower interest rate equates to .1 mill less levied, which adds up to about a ten dollar savings on a home with a taxable value of $100,000.

The closing for the bonds will potentially be April 3, with the school district receiving the funds soon afterward, several weeks earlier than the school district expected.

Baird was scheduled to deposit a good faith deposit of 2% on the bond sale in the school district’s accounts on Tuesday. In the unlikely event that Baird were to default in the future, the school district would keep that 2% and the bond would go out for another sale.

Now that the bonds have been successfully sold, the next phase in the projects will be starting soon and construction will soon be underway. The contractors for the new boilers and asbestos removal have been chosen, and the project will be starting over spring break and continue during the summer. Twenty-two different contracts will be coming in for the other projects for the school district, and more money may be saved or redistributed during those projects.

In other business, School Board also:

– Hired Middle School Track Coach Nicole Aube and Assistant Boys’ Track Coach Tony Valdez.

– Approved Middle School teacher Elaine Lautenschlager’s leave of absence.

– Approved a proposal to switch to 6 year school board terms of service.

– Extended thanks to Steven and Marilyn Kitchen for their generosity for their donation of hats and mittens to the school district.