Mercer Island taxpayers will save nearly $9 million thanks to premiums from the sale of bonds for Mercer Island School District (MISD) facilities projects.

“The school district has taken advantage of its sterling ‘Aaa’ credit rating and low interest rates to get more bang for the taxpayer buck,” said MISD Superintendent Dr. Gary Plano. “This translates into lower property taxes for homeowners.”

On June 3, the MISD Board of Directors approved the sale of $44,755,000 in general obligation bonds. It was the second and final sale of bonds approved by Mercer Island voters in the Feb. 2014 election for facilities projects to address overcrowding in Mercer Island public schools. In total, the district deposited $98.8 million from the two bond sales and only issued $90 million in bonds.

Underwriters paid a premium of $8,785,000 for the bonds, which translates into savings for taxpayers over the life of the bonds. Taxpayers will also save more because they will not pay principal and interest on that additional $9 million. Additionally, the bonds are now scheduled to be retired earlier than projected.

The ‘Aaa’ rating from Moody’s Investors Service is a reflection of the district’s Board of Directors, staff, and financial policies.

“This tremendous savings is possible because of the excellent financial stewardship of the school district,” said MISD Board President Brian Emanuels. “We are pleased to have saved taxpayers money on their investment in our public schools. My thanks go to the Mercer Island community for support of our schools and for the administration’s exemplary fiscal efforts.”

A report to the Board of Directors from Scott Bauer of A. Dashen & Associates stated, “The district’s top-notch bond/credit rating, the generally low interest rate environment, and good marketing and sales by Piper Jaffray & Co. resulted in an excellent bond sale.”