In anticipation of federal tax law changes eliminating the ability for the Lee’s Summit R-7 School District to advance refund past-issued general obligation bonds, the district’s Board of Education approved the refinancing of two bond issues on Nov. 29.
The refinancing of the remaining amount of these two bond issues will result in approximately $2.8 million in interest savings over the next 18 years until the bonds are fully paid. The refunded bonds were sold during the week of Dec. 11.
The positive response to the bonds from investors is due in large part to the financial management of the Board of Education and administration. Lee’s Summit R-7 once again received the AA+ rating from Standard & Poor’s Rating Agency after a lengthy review process. The feedback from Standard and Poor’s was very positive, with the rating rationale stating the AA+ reflects “good financial management as demonstrated by the district’s extensive long-term planning and conservative budgeting practices.”