The Floral Park-Bellerose Union Free School District is proud to announce that it received a lower than anticipated interest rate on the bond taxpayers approved in October 2018.
When budgeting for the bond, an interest rate of 3.25 percent had been calculated into the cost. However, the district bonded the work this week at the much lower rate of 1.82 percent, resulting in long-term savings for the community. This lower interest rate was due to the district’s strong financial position, its Aa2 Moody’s Rating, and the current credit market yielding historically low-interest rates.
“While I wish for better circumstances overall, the sale of this bond came at a time that will really benefit our community in the long-term,” said Michael Fabiano, assistant superintendent for business.
Over the course of the 20-year bond, this will amount to a $1.88 million reduction in the total amount paid in interest costs, resulting in savings to the budget each year of $94,000.
Repayment on the October 2018 bond doesn’t begin until the 2021-22 school year. Work has already begun and is anticipated for completion by Fall 2021.
Submitted by SYNTAX and the Floral Park-Bellerose Union Free School District
