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.