The Shoreline Unified School District refinanced a portion of its Election of 2009 General Obligation Bonds, Series 2010, which will save district property owners nearly $800,000 in taxes.
Interest rates were at historically low levels in late 2017, which allowed the district to replace the higher interest rates from the Series 2010 sale with today’s lower rates.
The Election of 2009 Bonds were authorized by more than 55 percent of Shoreline Unified School District voters, and were used for the rehabilitation, reconstruction, or replacement of classrooms and facilities, as well as improvements including seismic upgrades, modernizing school facilities and replacing outdated portable classrooms.
Interest rates on the Series 2010 Bonds ranged from 3.80 percent to 4.85 percent. The interest rate for the new bonds will range from 1.16 percent to 3.25 percent, a difference that will save property taxpayers a total of $794,058 over the life of the borrowing.
The final payment of the 2017 Bonds is August 2035, the same as the refinanced portion of the original Series 2010 Bonds.
“District staff and I identified an opportunity to refinance the district’s debt obligations and save taxpayers money. This was something we could not pass up,” said Superintendent Bob Raines.
The refinancing of the Series 2010 Bonds was authorized by the Shoreline Unified School District Board at its November meeting.
“We are absolutely thrilled with this fantastic result for our community. To save $800,000 is a huge win for the district and its taxpayers,” said Board President Jill Manning-Sartori.
District taxpayers will begin to see a reduction in property taxes beginning this year.