FARMER CITY -- The Blue Ridge School Board will pay off $620,000 in building bonds, saving $90,000 interest and reducing the district's levy.

Superintendent Jay Harnack said the move made financial sense, particularly with the low rate of return the district has been receiving on their cash reserves over the last year.

The bonds included $460,000 set to mature in December 2013, and another $160,000 due a year later.

Harnack estimated that levy could be reduced by around $115,000 this year (on taxes payable in 2010), and by $163,000 by 2013. The bond and interest fund would need to return to around $635,000 in 2014-17 to pay off the remainder of the high school building bonds, but the district has the option of also calling those bonds at that time.

The superintendent was not yet sure how much the tax rate would be lowered. The board will approve the annual levy next month.

The district's actual payment to retire the bonds is $631,691.67, with $11,691.67 being prorated interest that is due.