Edina homeowners will see a small reduction in the portion of their property tax assigned to the school district following the refinance of a district-issued bond. The refinance of a 2011 General Obligation Bond will result in more than $1.5 million in savings over four years and will reduce the levy amount the district will approve in December by about 0.67%.
Since the refinance was only recently approved, the savings will not be reflected in the proposed property tax document homeowners receive this fall. They will see the adjustment in their favor in their final 2020 tax bill.
“It may not be a lot, but this is at least the second time this particular bond has been refinanced, and we are able to reduce the levy by a little each time,” said John Toop, director of business services.
Whenever the district issues or refinances bonds, Moody’s Investors Services assigns a credit rating. Since the district went through a full credit rating process in spring 2019, before its issuance of $24.1 million in Long-Term Facilities Maintenance bonds, this rating process was less lengthy. However, the district was again assigned an Aaa rating, the highest granted to school districts. Edina Public Schools is one of three districts in the state with an Aaa rating.