JUNCTION CITY, KAN. – Geary County Schools USD 475 announced today an update to the issuance of bonds related to the Junction City High School Way Forward (the new Junction City High School). This bond issuance update follows a lengthy informational campaign that promised voters no increase to the district mill levy. The financial plan used to make these promises was extremely conservative and today district officials announced a significant cost avoidance as a result of good financial standing and planning.
The bond rating for USD 475 was upgraded to an “Aa2” which is considered a very good rating and reflects the district’s strong financial and budget practices. After receiving this rating the district was able to secure a combined interest rate of 3.69% for 25 years. The original financing plan used during the information campaign called for a 4.20% interest rate. Since a lower interest rate was achieved, Geary County Schools will save in excess of $10 million in interest cost over the lifetime of the bond.
USD 475 also announced that as a result of refinancing existing bonds held by the district, those bonds would be repaid four years sooner than originally planned resulting in interest cost savings of over $1.6 million.
“USD 475 has successfully executed a financial plan to deliver to the voters an outcome that improves upon the original estimates and as promised, results in a no mill levy increase.” – Dr. Corbin Witt, Superintendent of Schools.
Future savings will allow the Geary County Schools Board of Education the ability to consider new options for USD 475 in the years to come such as paying off these bonds earlier than originally planned.
For inquiries please contact Matthew Droge, Executive Director of Communications for Geary County Schools USD 475.