Mt. Diablo Unified School District recently completed the refinancing of $42.1 million in general obligation bonds, saving taxpayers nearly $5.9 million over the next eight years.
The District took advantage of still low interest rates due to economic uncertainty and the federal government’s inflation-fighting rate policies to refinance bonds originally sold in 2013 when interest rates were higher. The District Board of Trustees unanimously approved the refinancing of the bonds on March 22, 2023.
District voters approved the original bonds in 2002 and subsequently refinanced them in 2013; this is the second time the District has been able to lower rates on those original bonds. The funds from the 2002 election bonds were used to build new school facilities and provide for renovations and classroom improvements to existing schools. Interest rates on the refinanced bonds ranged from 4.0% to 5.0%, while the borrowing cost for the new bonds ranges from 2.0% to 2.57%. This difference in rates will save property owners $5,881,937.
“Once again the District has been able to refinance bonds to save taxpayers’ money,” said Superintendent Dr. Adam Clark. “In fact, in just the past two years we’ve been able to save property owners more than $54.8 million without extending the final payment on the bonds.”
Last year, the District refinanced $198 million in bonds, saving taxpayers $49 million through 2038.
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 our community. She added, “We were happy to have yet another opportunity to lower our bond payments.”
11 comments
Interesting how they are “Saving” us money….
Aren’t we still “Paying” money and not seeing promised results?
Bond Measures = Taxes.
VOTE NO !
@S
That’s right, S……..they’re saving us money on the “federal government’s inflation-fighting rate policies”. Good grief, what a load.
… so $700K +/- savings per year – guess they’re trying to put some kind of positive spin on the huge raises they just got (ranging 15-25%)… with the declining number of students they need to step up and start closing some schools
This is not that great a deal.
It lowers the bond payments but creates a new long-term debt.
It’s like refinancing your home to a lower rate but you renew your 30-year loan.
Your monthly payments go down but you have to make those lower payments for 30 years.
How much money is really saved?
Remember, creditors never lose money.
Not true. The final maturity stays the same.
Savings on my property taxes? I’ll believe it when I see it.
I say this with tongue-in-cheek, but where’s my refund?
65 or older by July 1, call (925) 682-8000 ext 4004 to get a Senior Exemption from paying the $67 MDUSD Mello Roos on your property taxes. Must file by June 1st. “Keep the $ in your pocket, not theirs”
MDUSD is still repairing previous contractor screw ups. They have a total lack of inspections on most projects. At what cost?
I have no respect for the MDUSD.
They supported the domestic terrorism group BLM. They had BLM plastered on most of their billboards supporting the billions in damages, over 2,300 acts of arson, 19+ murders and million assaulted over a false narrative. It’s about behavior not RACE.
MDUSD is supposed to be filled with educators. Not anymore, it’s full of political activist on the wrong side of history. When I went there they told you how to think, not what to think. Truly sad now.
How about saving money by actually being accountable and appropriate with taxpayer money? MDUSD sucks.
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