The Santa Maria Joint Union High School District says it can save taxpayers more than $6.3 million through lower property taxes.
The district explains that can happen because the district completed refinancing part of its general obligation bonds.
The refinancing was approved unanimously by the district board during its meeting Wednesday.
In a news release Thursday, the district compared the transaction to being “like a homeowner refinancing a mortgage by taking advantage of prevailing low interest rates and lowering their payments. The refinancing will save taxpayers over $6.3 million by lowering property taxes.
“These savings come at a time when the community is coping with the economic impacts of COVID and relieves some of the tax burden on property owners in the district,” according to the news release.
The district’s Board of Trustees directed its staff and financial adviser, CFW Advisory Services, to proceed with the refinancing at its Nov. 9 meeting. District staff then interviewed with the Moody’s rating agency and were able to secure a credit rating upgrade to “Aa2,” based on the board’s fiscal management and the economic strength and stability of the Santa Maria area.
The high credit rating led to the bond sale being well-received by investors, according to the school district, which explained the demand exceeded the amount of available bonds. The district was able to lock in its interest rate at 2.64%, which the news release described as a “near historic low for this type of bond.”
“We greatly value the support our schools receive from our community, and we are happy that this refinancing will save our local taxpayers more than $6 million,” said Yolanda Ortiz, the district’s assistant superintendent of business services.
The district also sold an additional $67 million in bonds at an interest rate of less than 2.5% to complete the reconstruction of Santa Maria High School. The money also is funding other projects to improve facilities.
email: dmason@newspress.com
