Kenton City Schools is saving taxpayers money as bonds went on the market this week for the construction of the new Kenton Secondary School Building Project.
Bonds sold this week at an average interest rate of 3.232 mills, instead of the 3.5 mills listed on the ballot this past fall, which equates to a $655,000 total savings in interest.
“We received the lower interest rate because of our strong financial history and outlook,” said Superintendent Chad Thrush. “We have earned an A1, up from an A2 rating from Moody’s investor service that combed through our district financials, as well as interviewing our Treasurer and I.”
This rating is similar to an individual’s credit score. The better the score or rate, the better the loan interest rate.
Due to the district’s fiscal responsibility, taxpayers have not been approached for additional operating funds in over a decade with no continuing property tax increases for operations since 1985.
Another important factor in this designation was the expiration of the .5% income tax due to the Kenton Elementary School construction being completed on time and under budget in 2014.
“The community’s overwhelming support of a new secondary school by passing the bond issue on the first try surely helped the rating as well,” said Thrush.
The district’s next step will be to request quotes from architecture firms for the design of the building.
The district plans to have an architect contracted sometime next month.