LOWER LAKE, Calif. – Refinancing of school district bonds completed last month is expected to give a break to the taxpayers in the Konocti Unified School District.
The district reported that it refinanced $5.675 million in general obligation bonds in April, an action which will save district property owners more than $970,000 in taxes.
District officials said they took advantage of very low interest rates to refinance its election of 2004 Series B and Series C Bonds.
The Series B Bonds were originally sold in December 2006 in the amount of $4.5 million and the Series C Bonds were sold in September 2007 for $3.4 million.
The Series B and Series C Bonds were authorized by more than 71 percent of Konocti Unified School District voters at an election held on Nov. 2, 2004, and were used to build new libraries, replace and repair classrooms and other school buildings, and build a new gym.
Interest rates on the refinanced bonds ranged between 4 percent and 4.20 percent. The borrowing cost for the new bonds is 2.40 percent, a difference that will save property taxpayers approximately $970,052.59 for the refinancing, the district reported.
“With interest rates near historic lows, we felt it was the right thing to do to save our community money,” said Superintendent Donna Becnel.
Laurie Desimone, chief business official, added, “Part of my job as CBO is to keep an eye on our bonded debt obligations and seek opportunities to reduce property taxes.”
The refinancing of the bonds was unanimously approved by the district board of trustees on March 16.
“We know that our community supports our schools, and as stewards of taxpayer dollars, we felt this bond refinancing was the right thing to do,” said Board President Sue Burton.
Property owners in the district will see a reduced property tax rate on future tax bills.
Konocti Unified's successful refinancing of its bonds follows similar efforts by other local educational districts, as Lake County News has reported.
In 2015, the Yuba Community College District restructured its Measure J bonds for a total savings of $14.2 million for taxpayers.
Measure J, passed in 2006, authorized up to $190 million in bond sales to fund improvements across the district's campuses and facilities. The bond sales funded numerous improvements, including new buildings, at the campus in Clearlake.
In late 2013 the Lakeport Unified School District refinanced bonds for a total savings of more than $52,000. In November 2001 Lakeport Unified approved a bond measure for up to $7.5 million in bond sales to fund improvements to classrooms as well as the construction of the Marge Alakszay Center multipurpose building.
Konocti Unified School District refinances bonds; action saves taxpayers nearly $1 million
- Lake County News reports
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