PRESS RELEASE
October 10, 2012
For Immediate Release
Contact: Tim Schram
Ehlers
800.697.8500
tschram@ehlers-inc.com
Debt Refinancing Saves Lakeville School District Taxpayers
Over $11 Million 

Ongoing Action Reduces Debt 

LAKEVILLE, MN - October 10, 2012 - On Tuesday night, the Lakeville School Board approved the sale of a bond issue that will substantially reduce district property taxes. The new bond issue will be used to refinance two prior bond issues at lower interest rates. The result will be a reduction in property taxes of $1,058,000 in 2013 and a total of $11,368,000 over the next nine years.

 

Ehlers, based in Roseville, MN, served as the district's independent financial advisor and solicited competitive bids on the bonds. A total of 14 bids were received. The winning bid was submitted by Bank of America Merrill Lynch, with a true interest rate of 1.49%.

 

"The district was able to take advantage of today's historically low interest rates and achieve an outstanding result for its taxpayers," stated Joel Sutter, Financial Advisor at Ehlers

 

Tuesday's action was part of ongoing efforts by the district to reduce taxes for the district's debt. Since 2002, the district has conducted seven refunding bond sales that reduced payments by a total of over $25 million. In 2010, the district also received approval to issue Qualified School Construction Bonds, a unique type of bond authorized by the federal stimulus bill; that action reduced net interest costs by an estimated $5 million.

About Independent School District 194, Lakeville Area Public Schools

Independent School District 194, the Lakeville Area Public Schools, is an award winning school system located in the South Metro of the Twin Cities of Minneapolis and St Paul Minnesota. The District serves approximately 10,800 students in Dakota County and Scott County, and covers 86 square miles, including most of Lakeville, parts of Burnsville and Elko New Market, and portions of Eureka, Credit River and New Market Townships. There are eight elementary schools (K-5), three middle schools (6-8) and two high schools (9-12), an Area Learning Center and two Community Education facilities.

 

Lakeville Area Public Schools posted significant gains in math performance and maintains a high level of proficiency in reading on the 2012 MCA-II/III accountability assessments.  In comparison to the 7 county metropolitan area, Lakeville ranks 5th in overall proficiency and experienced the 8th largest performance gain. Compared to the top 10 MN districts by size, Lakeville ranks first in both math and reading proficiency. Visit http://www.isd194.k12.mn.us/pages/Lakeville_SD for more information.


About Ehlers 

Ehlers, an independent public finance advisor for over 50 years, is ranked second nationally in number of competitive sales advised.  (Source: Bloomberg, 212-318-2000. August 14, 2012.) Our goal is to help public sector clients' achieve practical financial solutions at the lowest cost to taxpayers. Our only allegiance is to the communities to which we serve. Our success is the result of established long-term relationships, hard work, and years of experience. Ehlers works with counties, municipalities, townships, school districts, and other governmental units build better communities through the products and services we offer: Debt Issuance Services, Economic Development and Redevelopment, Financial Planning, and Strategic Communications. Visit http://www.ehlers-inc.com/ for more information. 

 

 

Ehlers Inc., Ehlers Investment Partners and Bond Trust Services are affiliate companies.

 

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