Special to the Reporter

Mercer Island School District (MISD) has successfully refinanced the remaining $40,495,000 outstanding from the 2014 bonds. While this proactive and voluntary action on March 26 will not affect the district’s budget, it will save Mercer Island taxpayers more than $1.5 million during the remaining five years of bond payments.

In recent months, the district and its partners at financial services company Piper Sandler actively monitored bond market conditions, and low interest rates allowed the district to exceed its savings target. Interest rates averaged 2.94% on the new bonds compared to 3.97% on the refinanced debt.

MISD was also a strong candidate for investors because of responsible stewardship and financial management by the district’s board and administration. Also significant is the district’s participation in the Washington State School District Credit Enhancement Program that is dependent upon voter approval and provides investors with surety for the repayment of the bonds.

Superintendent Fred Rundle noted, in part: “We understand the trust imparted to us by our citizens and truly appreciate the support of the community. While this may not yield significant savings to the individual, we hope it conveys our commitment to making decisions in the best interests of Mercer Island.”

Executive Director of Finance & Operations Matt Sullivan emphasized that these savings flow directly to taxpayers through reduced tax levies and are not available for district expenses.

“This is a direct savings to our community members in the form of taxes they expected, but will not have to pay,” Sullivan said.

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