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Home News Latest Konocti Unified refinances bonds at low interest rates; district says refinancing saved $625,000

Konocti Unified refinances bonds at low interest rates; district says refinancing saved $625,000

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LOWER LAKE, Calif. – The Konocti Unified School District successfully refinanced a portion of its outstanding Measure “G” General Obligation bonds last month to take advantage of historically low interest rates in the bond market.

District officials said the bond refinancing will save taxpayers in the district approximately $625,000 over the remaining term of the bonds.

These savings will be passed along directly to local taxpayers in the form of reduced property tax bills, the district reported.

“For some time now, the district has been monitoring interest rate trends, waiting for a good opportunity to refinance the debt. After due consideration, the district determined that the timing was now appropriate to lock in a new, low interest rate and to capture significant taxpayer savings,” said district Business Manager Laurie Desimone.

Refinancing local school bonds is similar to refinancing a home mortgage – replacing existing high interest rate debt with low interest rate debt.

The bonds were originally issued in December 2004 following the successful passage of Measure “G” by local voters.

The proceeds from the 2004 issuance were used to improve classrooms and school facilities, increase student access to computers and modern technology, and to make the district eligible to receive additional state grants.

“The board of trustees and district staff greatly value the strong support we receive from our community, and we are very pleased to complete this refinancing and to pass along these substantial savings to our local taxpayers” said Superintendent Donna Becnel.

Officials said the district will continue to monitor opportunities to refinance bond debt in the future, and will pursue opportunities that will result in a benefit to local taxpayers.

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Comments (1)Add Comment
Shane Lee
Would be great if...
written by guywithanopinion, February 05, 2013
More would be spent on our students. Our students deserve more. As a tax payer, this reads like a fantastic thing. But as a teacher, some of these things have not translated directly into classrooms. The technology situation at KUSD is so far behind the times and student access is limited to type the least.
This piece is all about timing... KUSD is about to enter into contract negotiations with the teachers. Some may see this as a "preemptibe strike" with pending contract negotiations this Friday and potentially into the school year. KUSD's initial offer to teachers has been woefully low and upsetting to CAs lowest paid group of teachers.
So, KUSD taxpayers, enjoy this savings but know of the cost our kids have been paying.

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Last Updated ( Tuesday, 05 February 2013 00:45 )