Politics & Government
School Board Votes to Refinance Bonds: Taxpayers Save
School board vote could save taxpayers up to $473,000.
The (BUSD) Board of Trustees voted to refinance two General Obligation Bonds at their regular meeting Thursday, Sept. 15.
By refinancing the bonds at current interest rates, taxpayers could save up to $473,000 repaying the bond.The savings for individual taxpayers comes out to $4.90 for every $100,000 of property that is assessed.
After receiving a presentation from De La Rosa & Co., investment bankers, the fifth presentation overall during the Thursday night meeting, the trustees voted unanimously to refinance bonds issued in 1991 and 1997.
Recent economic turmoil all over the world has resulted in an influx of money from the stock market to the bond market, which is currently experiencing all-time lows in interest rates. “It’s perfect timing for a (bond) issuer to take advantage of refunding opportunities,” said Katherine Perkins of De La Rosa & Co.
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Although it will be up to the board how the savings will be applied, the consensus was to pass the savings on to taxpayers. Homeowners should expect to see the savings in their tax bill next summer and the tax assessment following that. “This is a no-brainer,” said Trustee . “We’re saving the public money, there’s not very many opportunities that we have to do this,” Messina said.
