The Goleta Union School District successfully refinanced its 2005 general obligation bonds saving local property owners in the District over $1.25 million. The savings will be spread out over the next 16 years in the form of lower property tax bills.
“The Board felt as stewards of public dollars it was our responsibility to take advantage of this bond refunding opportunity,” said Superintendent William Banning. “We are excited to pass on this savings to our local homeowners and businesses.”
The original bonds were approved by more than two-thirds of the voters casting ballots in the November 1996 general election. The original funds were used to finance the renovation and rehabilitation of existing schools, the construction of new classrooms, and upgrading and improvement of various building electrical and mechanical systems.
By refinancing the original general bonds, the District was able to take advantage of the low interest rate environment. The borrowing costs dropped from interest rates ranging from 3.5% to 5.0% down to an average rate of 3.32%.
The District received a rating of “AA-” from Standard & Poor’s and a rating of “Aa2” by Moody’s Investors Service. The District received a high rating due to the strong local economy, low overall debt burden, and stable financial position. The better a district’s rating, the lower interest rates tend to be.
The bonds were sold through a negotiated sale on June 27, 2013 to Wells Fargo Securities located in Los Angeles, CA. The District was represented during the refunding process by Dale Scott & Company, a financial advisory firm serving California school districts.
Source: Goleta Union School District