October 5, 2021
District Builds Upon February 2021 Savings Announcement & Upgraded Credit Rating
During the September 13, 2021 board work session, Shakopee Public Schools Board approved the refunding of a bond that will save taxpayers an additional $1.27 million dollars on taxes payable 2023 through 2035. This is the third bond refunding completed this year. The savings to taxpayers when this current bond refunding is added to the two previous bonds brings the total to $8.06 million over the remaining life of the three bonds.
Throughout the course of each school year, the district works with its municipal advisor, Baker Tilly, to review interest rates and opportunities to refund bonds, among other items. The district’s past bond credit rating was upgraded by Moody’s Investor Services from Baa1 to A3 (February 2021) This upgrade played a role in the additional refunding opportunity.
When the district refunds its bonds, it’s a process similar to when homeowners refinance their home loans. The refunding does not result in any additional funding for the school district, all the savings go directly to taxpayers.
“We understand that every bit of taxpayer savings counts, and this third and final bond refunding is a good decision for our community’s taxpayers ,” notes Shakopee Public Schools Director of Finance, Bill Menozzi. “Our finance team and district will continue to work hard in providing financial transparency to the community and continually identify positive opportunities for the district and taxpayers, whenever possible.”