The Enumclaw School District recently announced a debt restructuring that will save local taxpayers more than $3.3 million.

According to a district-wide email send on May 27, the ESD Board of Directors sold nearly $44 million of its Unlimited Tax General Obligation Refunding Bonds last month.

Selling those bonds — which is the remaining debt from the $68.5 million bond voters passed in 2015 — refinanced the bond’s interest rate from 4.95% to 3.67%, saving taxpayers $3.36 million over the next nine years via lower property taxes.

“Enumclaw’s school board and administration have worked diligently to secure all the pieces necessary to make this a successful bond sale. Success is measured by the ultimate borrowing cost for the bonds. The lower the cost, the lower the tax burden incurred by our community. All our efforts strive to provide a result that truly honors the community’s support,” Superintendent Dr. Shaun Carey said in the press release.

The district noted that this sale was made possible through “responsible stewardship and financial management” that was rewarded with an “A” rating last April from Moody’s Ratings. Moody’s Ratings is considered one of the top three credit rating firms, along with Standard & Poor’s (S&P) and Fitch Group.

In short, an “A” rating means the district has high credit quality and low credit risk.

The district’s ability to refinance was also attributed to being a part of the Washington State School District Credit Enhancement Program, rated “Aaa” by Moody’s (which is equivalent to S&P’s “AAA” rating.)

The state School District Credit Enhancement Program helps ensure school districts are able to pay back its debt through “the full faith and credit of the state,” the program’s webpage reads.

INDIVIDUAL SAVINGS

While overall this refinanced debt will save taxpayers a total of $3.6 million over nine years, what does that means for individuals?

According to ESD Director of Business Kyle Fletcher, the savings will reduce the overall property tax rate by 4.7 cents.

This saves around $28 a year for the average homeowner with a $600,000 home.