CROSBY -- Crosby-Ironton School District residents will pay less than previously estimated on the school portion of the 2003 property taxes.
The Crosby-Ironton School Board sold $20.525 million in general obligation bonds Monday to U.S. Bancorp Piper Jaffray at an interest rate of 4.3146 percent.
The bonds were AAA rated. With this rating, if the district is unable to make a bond payment, the state will make the payment.
The district received four bids that ranged from 4.3146 to 4.4427 percent.
Carolyn Drude, of Ehlers and Associates financial advisers, projected a 5.1 percent interest rate for the 20-year bond before the $20.525 million bond referendum passed in December.
Drude said a homeowner with a $150,000 market value home would have paid $121.60 with the 5.1 percent interest rate. That same homeowner will now pay $105.40.
Crosby Business Manager Bill Tollefson said the school district levied the money for 2003 based on the 5.1 percent. He said this means the residents will pay the amount based on the 5.1 percent rate for the first year and the remaining years on the bond will be the amount based on the 4.3146 percent.
Tollefson said with the lower interest rate, taxpayers as a whole, will save about $2.5 million in interest.
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