Monday, June 3, 2013
June 2, 2013 Cashton Qualifies for Interest Free Bonds
I am excited to report that Cashton School District qualified for $1,140,0000 in Qualified Zone Academy Bonds (QZAB). This means the district will be able to borrow that amount interest free as part of the 12,310,000 that will be borrowed to finance the facilities referendum projects. QZAB funds are federal funds available to school districts who have at least 35 percent free and reduced lunch. To qualify for the interest-free bonds the district had to secure private matching in excess of $100,000. The primary source of private funds were donations provided by Organic Valley and by Cashton alumni Don Weber. Having access to interest free financing will save taxpayers money because the district will have less interest obligations. Brian Brewer, the district’s bond counsel with Robert W. Baird & Co, estimates that this could save taxpayers about $340,000 over the next twenty years.