Santa Barbara, CA – September 20, 2021. The Hope Elementary School District refinanced $4.16 million in general obligation bonds which will save district property owners more than $320,000 in property taxes. Last month, the District took advantage of very low interest rates due to the coronavirus pandemic and overall economic uncertainty to refinance prior bonds, Measures L, from an election in 2010.
Interest rates on the old bonds ranged from 4.00% to 5.00%. Interest rates on the new bonds are from 0.42% to 2.75%, a difference that will save property taxpayers $320,502.
“With interest rates at historic lows, we felt it was the right thing to do to save our community money,” Superintendent Hubbard stated, “We are thrilled with the results of the sale.”
Over the years, District voters have approved different bond measures at different elections. The proceeds of these bond measures have been used to fund improvements to aging district classrooms and school facilities, upgrade outdated infrastructure, make technology upgrades, as well as make safety and security improvements. Major construction, renovation, and modernization projects to the schools in the District have been completed thanks to these voter-approved bond election authorizations from 1995 to the recent March 2020 Measure J election.
“Part of my job and that of the District is to watch our general obligation bond indebtedness and to find opportunities to lower payments, directly benefiting property owners in our District for years to come,” Mike Thomson, Chief Business Official, added.
The refinancing of the bonds was authorized by the Board of Education on August 23, 2021. “We appreciate the overwhelming support our community shows to our neighborhood schools, in particular last year’s passage of Measure J. We want to ensure our community knows we are doing, and will continue to do, everything possible to save taxpayer dollars,” said Board President, Elizabeth O’Brien.
Property owners in the District will see a reduced property tax rate on future tax bills.