Levelland ISD may pay a higher interest rate on a bond issue than originally expected, trustees learned Thursday.
Interest rates, originally in the 3.25 percent range, are now at about 4.46 percent, said Vince Viaille, managing director of Specialized Public Finance Inc.
‘We have some pretty dramatic changes,’ Viaille told the board. ‘We have had a spike in interest rates in the last few weeks.’
However, the rates did decline slightly Thursday.
Based on the increase to 4.46 percent, issuing the general obligation bonds on the $39.47 million issue could raise the tax rate from 13.5 cents to 15.5 cents per $100 valuation.
Financing the issue at an interest rate of 4.46 percent would push its total cost to $65,558,000 over a 25-year period. Approximately $26 million of that would be interest costs.
Viaille said the district could fund the issue over a 30-year period, but that would add $14 million in additional interest.