Well-run school district saves taxpayers money, officials say

Carson School District officials say a low interest rate on part of $25 million in voter-approved school bonds could save taxpayers more than a half-million dollars and shows the district is strong and well-managed.

Over the next 20 years, the district will pay $6.6 million in interest on a second portion of those bonds, worth $15.5 million, that are being used to upgrade utilities, make repairs and expand Carson Middle School. This is $500,000 less than the district expected to pay in interest.

According to Bob Anderson, district financial director, "What will happen because we got this lower rate is the tax rate will be able to go down sooner."

The district uses property taxes to pay for the bonds, so the sooner the bond can be paid off, the sooner taxes can drop.

On Tuesday, a financial analyst group gave the school a good bond rating, comparable to a good credit rating, and a Tennessee corporation gave the winning bid to buy the bonds on Wednesday.

The first section of bonds, equaling $9.5 million, was sold in December. Voters approved the bond initiative in November.

According to Moody's Investor Service, the financial group that analyzed the school for the second portion of bonds, the rating "reflects the district's healthy tax base growth and stable local economy, healthy financial position and prudent fiscal management and somewhat low debt profile."

Also, the group said taxes and enrollment will stay steady even though the city doesn't have much room to grow and "the local economy has a relatively low level of commercial and industrial diversity and is based largely on tourism and gaming industries."

Mike Mitchell, district director of operations, said the school improvements are going well and should be done in about a year.

He acknowledged the district's better bond rating didn't necessarily cause the low interest rate, but "it certainly doesn't hurt."

"When people see that Moody's is able to give us a good financial rating, it really reflects on our long-term management style and I think that's what voters and people who invest money are looking at: What's the stability of your management?"

Right now, workers are focusing on getting the district ready so students can go to classes later this month while renovations continue.

"The interesting thing about schools is when the bell rings and the kids go back, anything else doesn't matter," Mitchell said. "You're going to have school. All we can do is make damn sure we're as close to being ready as we can."

The district is happy to save money for a city that had enough confidence to approve the bonds in the first place, said Superintendent Mary Pierczynski.

"It saves the taxpayer," she said, "and we're all interested in doing that."

• Contact reporter Dave Frank at dfrank@nevadaappeal.com or 881-1212.