Oak Harbor School District is saving some tax dollars by refunding bonds purchased in 2005.

The bonds, used to buy state and local government securities, are being refunded and replaced by newly issued bonds, according to Roy Koegan, an attorney for school district.

The new bonds are being issued to pay off the old bonds. The debt service will be lower, saving taxpayers money, according to Koegan.

“Since the 2005 bonds were issued, the rates have increased, so they’re issuing new bonds to pay off the old bonds,” Koegan said.

According to the Refunding Bond Update provided to the school board from brokerage firm D.A. Davidson & Co., the savings will be spread out between 2014 and 2020, for an estimated total savings of $159,420.56.

Koegan said that the value was converted into today’s dollar value, which turned it into a “conservative” $152,585.58.

“The only reason they’re doing it is to save money for the taxpayers,” he said.

The only difference will be a lower debt service, according to Koegan. He also said that the debt service is paid with levied tax dollars.

“They can only levy taxes to pay debt service on the bonds,” said Koegan, “so since the debt service is lower, the citizens are taxed a lesser amount.”

The school board, at Monday’s meeting, approved the motion to refund the bonds unanimously.