In September, the Taft City School district refinanced $3.53 million in general obligation bonds which will save district property owners almost $300,000 in property taxes.
The district took advantage of very low interest rates due to the coronavirus pandemic and overall economic uncertainty to refinance its 2012 Series A general obligation bonds.
On June 5, 2012, district voters authorized the sale of up to $23.6 million of general obligation bonds for the renovation, construction and improvement of local elementary school facilities. The 2012 Series A GO bonds were the first of two issuances from that authorization.
Interest rates on the 2012 bonds ranged from 3.25% to 4.00%. Rates on the new bonds range from 1.053% to 2.689%, a difference that will save property taxpayers $288,755 without extending the original term of the borrowing. The final payment of the new refunding bonds will remain the same as the original August 1, 2037 payments of the old 2012 bonds.
Superintendent Julie Graves stated, “With interest rates near historic lows, we wanted to take this opportunity to save our community money.” “We know that our community supports our schools, and in turn we wanted to give back to them by saving taxpayer dollars,” said Greg Mudge, Board President. “While the education of local students is a core mission of the district, we are mindful of all of our district responsibilities, and that includes looking out for our taxpayers.”
Property owners in the district will see a reduced property tax rate related to the 2021 general obligation refunding bonds on future tax bills.