Highland board OKs plan to buy back bonds

At its Monday meeting, the Highland school board approved a plan to save the district's taxpayers some money on outstanding general obligation bonds.

The plan, which passed unanimously, calls for the district to buy back some of the $3.7 million in bonds that were issued last year.

'We're buying back now to save later,” Highland Superintendent Ken Crawford said. 'It doesn't make taxes go up, and we'll be out of debt sooner.”

The district will raise an additional $440,000 with an increase to the debt levy to $2.69 per $1,000 of taxable valuation, which is just under the state maximum of $2.70.

The district's current debt levy is $1.4989 per $1,000 of taxable valuation.

Crawford explained that the bonds cannot be bought back immediately.

The bonds, which are scheduled to be called in June 2029, will be considered mature in June 2026.

After the bonds mature, the district has the option to buy some or all of them back early, saving interest that would accrue from 2026 to 2029.

The district will place $440,000 in escrow until the bonds mature. That money will be used to buy back mature bonds before the 2029 call date.

Crawford estimated that the district would save about $26,000 in interest.

'It's just good business,” Crawford said.

He added that the district will consider making a similar move each year to save the district even more money.

'If we can do more next year, we'll do it,” Crawford said. 'If there's an opportunity to buy back in the future, we'll do it.”

While the district's debt levy will increase, its overall levy is expected to decrease.

The district's current overall levy is $13.06 per $1,000 of taxable valuation, and has proposed an overall levy of $13.01.

On a property with a taxable valuation of $100,000, the tax bill would drop from $1,306 to $1,301.

The board agreed to set an April 12 public hearing on the proposed new levy.