Mt. Diablo Unified School District recently completed the refinancing of $198 million in general obligation bonds begun last year, increasing savings to taxpayers from an estimated $48.7 million to nearly $49 million, which will save District property owners an additional $300,000 in taxes over the next sixteen years.
The District took advantage of interest rates that were near all-time lows due to the COVID pandemic and economic uncertainty to refinance bonds originally sold in 2011 and 2012 when interest rates were higher.
The District Board of Trustees unanimously approved the refinancing of the bonds on August 25, 2021. Last October, the District paid off nearly $30.3 million of the total. It expects to close on refinancing the remaining $167.98 million next month.
District voters approved the prior bonds in 2002 and 2010. The funds from those bonds were used to build new school facilities and provide for renovations, upgrades, and other classroom improvements to existing schools. Interest rates on the old bonds ranged from 3.5% to 5.5%, while the borrowing cost for the new bonds ranges from 0.08% to 1.79%. This difference in rates will save property owners $48,998,846.
“Our community has always trusted us by supporting our bond measures,” said Superintendent Dr. Adam Clark. “And as stewards of taxpayer dollars, we felt this refinancing was the right thing to do.”
Homeowners in the District will see their property taxes reduced by an average of $5.25 per $100,000 in assessed valuation starting this year. This means District homeowners who previously paid $90.90 per $100,000 in assessed value will see their property taxes drop to $85.65 per $100,000 in 2022-23. On a home valued at $600,000, this would amount to a drop from $545.40 to $513.90 a year for an annual savings of $31.50. Over 16 years, the savings in this scenario would total approximately $473, depending on assessed value growth.
Chief Business Officer Dr. Lisa Gonzales said she keeps an eye on the District’s debt obligations and looks for opportunities to “save money for the District and our homeowners. We were happy with the opportunity to do so with this refinancing.”
PULL YOUR KIDS OUT OF PUBLIC SCHOOL.
Nah. Just pull out so you don’t have kids, to begin with. That’s the real money saver.
@AJR….”Good answer, good answer”. You are talking 60s contraception, “Like a train, it always pulls out on time.”
STOP supporting any more bond measures for this ridiculous district. They do NOT support academic learning, children, or families. Support school choice! Force public schools to be held accountable!
+1
Since when is this Adam Clark’s community?
in the academic mindset, it is often called the “Educational Community”. Shortened to sound noble: Community.
Isn’t he a Antioch or Pittsburg guy?
All eyes pointed toward saving on the interest (which IS good), but what happened to the original $198 Million?
Consider that and how much money the Feds have thrown at the state since covid. And the record tax collections just announced.
Where’s all that money?
I spotted a government-plated Tesla the other day and thought how nice we’re buying cars like that for un-elected bureaucrats while they spend ever more of our money.
Meanwhile, try getting a pot hole fixed.
+1
Train wreck district. Incompetent school board, corrupt administration. The better teachers are fleeing…
Oo 49 million. So where’s my refund? Oo wait, it’ll just go somewhere else, so we didn’t actually save a penny. Nice try.
“And as stewards of taxpayer dollars, we felt this refinancing was the right thing to do.”
That’s your flipping job and more. Do the right thing all the time, maybe not asking for a bond measure every 5 years is the right thing to do.
Could someone please enlighten me?
The $198 million in general obligation bond, what has that money been used for?
Or, what is it supposed to be used for?
Now that its interest impact is reduced, does the board still need all that money?
100% savings by not passing any more bond measures…
It’s only a ploy to hid the mismanagement of taxpayer dollars since she’s been in office. This school district needs to be placed under investigation!