The Cherry Creek School District Board of Education set the mill levy rate for property taxes at their regular meeting Monday, Dec. 14, 2015.
Due to TABOR limits the mill levy will decline in 2015 for Cherry Creek from 25.712, to a 2015 base mill rate of 22.494 for the local contribution to the financing of public education.
Cherry Creek is one of just three school districts in the state that has not "de-Bruced," which allows school districts and other government agencies to keep tax revenues above the rate of inflation and population growth. That means that despite a large increase in property values in the last few years, residential property taxes in the Cherry Creek School District will increase by just 3.09%, or an average of $4 per year on an average priced home.
The chart below shows comparisons of the mill levy change impact in some neighboring districts.
Recently the district also refinanced some of its existing bond debt to a lower interest rate saving taxpayers $3.3 milllion in the next three years.
The bonds were sold competitively with bids received electronically via the internet. The winning bid was submitted by Wells Fargo Bank, National Association with a True Interest Cost of .79%. The cover, or second best bid, was submitted by J.P. Morgan Securities, LLC. There were 13 additional firms that submitted bids including Bank of America Merrill Lynch, Citigroup Global Markets, Piper Jaffray, Morgan Stanley, D.A. Davidson, George K. Baum, Baird, and Stifel Nicolaus to name a few.
"This transaction reduced the principal amount of the outstanding debt by almost 5 million dollars, while also lowering the average interest rate from 3.99% to .79%," Guy Bellville, Cherry Creek School District CFO, said. "Being able to refinance at well under 1% is tremendous."
"Cherry Creek is an extremely strong credit, as evidenced by the Aa1/AA ratings assigned by Moody's and Standard & Poor's, respectively; and the strong bids received and the 15 bidders that competed to buy the bonds are a reflection of the credit markets' view of the District's quality," Jim Harrington, Ehlers Senior Municipal Advisor, said.
Mill Levy Resolution 256-15.pdf