The sale of Newberg School District general obligation bonds yielded a big return for Newberg taxpayers. The $27.1 million bond to maintain and repair schools, update and equip classrooms and install energy upgrades were sold by Seattle Northwest Securities Tuesday morning, June 28th.

The district was able to finance the entire bond issue at 0.4 percent net interest and reduced the life of the debt by two years.

Using conservative financial estimates, the school district told voters the new school bond would cost taxpayers 85 cents less per thousand of assessed value than what they currently paying over a ten year period. Instead, Newberg School District taxpayers will pay 87 cents less per thousand dollars of assessed value than their current payment for eight years.

Superintendent Paula Radich said several factors were in the district’s favor, including:
• The school district’s strong credit rating by Moody’s bond rating report that characterized the district as fiscally conservative with an excellent history of managing funds.
• The district’s success in qualifying for Qualified School Construction Bonds (QSCB), federal stimulus funds that pay the interest on $15 million of the $27.1 million bonds -- saving taxpayers approximately $4 million
• High investor demand for the Qualified School Construction Bonds
• Seattle Northwest Securities packaged the school district bonds to maximize investor response

School officials are in the early stages of carefully researching and planning initial textbook and technology purchases, repairs and construction. A request for proposals for architectural services closes July 20th with selection expected in early August.