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School District Bond Refinance Will Save Taxpayers $17 Million (Poll)

By taking advantage of historically low interest rates, the San Ramon Valley Unified School District was able to dave taxpayers money from a 2002 bond.

From the San Ramon Unified School District

The recently refinanced several outstanding general obligation bonds, a move projected to save property owners more than $17 million in taxes.

The bonds, totaling $167.9 million, were originally authorized when voters passed the district’s Measure A Facilities Bond in 2002. The bond was used to repair and upgrade aging facilities throughout the district.

The District was able to take advantage of a historically low interest rate environment. The interest rates on the outstanding bonds from the 2002 authorization ranged from 3.55 percent to 4.77 percent. The interest rates for the new bonds issued on June 19th range from 0.52 percent to 3.14 percent, a difference that will save property owners $17,002,379. 

The refinancing of the bonds was authorized by the Board of Education at its May 22 meeting. “Ten years ago, the community generously voted to support its schools by passing Measure A,” said Superintendent Steven Enoch. “Taking advantage of the low interest rates and the district’s favorable bond rating allowed us to generate considerable savings for property owners .”

Prior to the bond sale, the District’s bonds were rated by Standard & Poor’s and Moody’s, which provide credit ratings and research covering debt instruments and securities worldwide.  Moody’s assigned the District the rating of “Aa1” with a “stable” outlook.  The rating of “Aa1” is the highest rating ever assigned to a California school district.  

Standard & Poor’s assigned the rating of “AA” with a “stable” outlook, and referenced the “high desirability of the district’s educational services, and good financial performance demonstrated by the district’s strong reserve levels.”  
 
In addition to the lower interest rates, the District also chose to restructure future debt payments of Measure A bonds to provide taxpayers with a more stable tax payment each year.

Sam Clemens June 26, 2012 at 01:40 PM
Interesting how the district fails to mention the difference in the average interest rate, average loan term, and annual interest expense. No way of knowing how much of the savings is from a true rate savings and how much of the so called "saving" is from kicking the can down a longer loan term road. Sneaky guys this school board. Same one's that foisted solar panel debt on our children based on the premise we will see our electric bills double in the next three years. Ha ha. Don't vote more facilities money to the teacher's union dominated schools. We have an opportunity to create globally competitive schools. Invest in a changed system. Www.studentsfirst.org.
Sam Clemens June 26, 2012 at 01:49 PM
The board is just arranging things so they can pile more debt on the citizens with a November school bond to build fancy structures at a cost of 260 million. Yet they refuse to take on the real challenge of firing crappy teachers, rewarding good ones, implementing labor saving technology that improves education but are opposed by Union Wirk rules. And don't forget the use any cash they have to pay teachers for furlough days (in effect adding two extra paid vacation days in 2010 at a cost of $2 milliOn) The waste must go on and on.

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