The Los Alamitos Unified School District is proud to announce its most recent initiative to benefit students and community members. Under the leadership of the Board of Education, the District chose to take advantage of historically low interest rates to refinance some of its old Measure K General Obligation Bonds. The District selected the right time to refinance the Bonds and was able to reduce the interest rate on the prior Bonds from 5.34% to 2.55%, reducing the community’s tax bill by $4,460,904 from 2021 to 2039. The District’s Financial Advisor, Tim Carty of Piper Sandler, said that the savings the District was able to achieve were more than double what is typically seen on a refinancing of a school bond.
The District itself will not receive any part of the savings and the life of the bond terms have not been extended; the benefit is to the tax payer. The Board of Education, pursued this opportunity strictly on behalf of local taxpayers as part of their continued support for the education of the children and our community.
In addition, on June 23, 2020 the District was also able to take advantage of the current historically-low interest rate environment to sell $8.5 million of its Election of 2008 Measure K General Obligation Bonds and $39.5 million of its Election of 2018 Measure G General Obligation Bonds.
For Measure K, the District received five bids from financial institutions at competitive sale and awarded its 25-year bonds at an average interest rate of 2.57%.
For Measure G, the District received seven bids from financial institutions at competitive sale and awarded its 30-year bonds at an average interest rate of 2.71%. The District estimates that by moving forward the second Measure G bond issuance by one year from its originally scheduled sale date in 2021, it saved local taxpayers $29,826,003 in reduced interest cost.
Both of the bond issuances closed on July 14th. Board President, Meg Cutuli, stated, “We elected to take advantage of the historic low interest rates to refinance portions of our 2008 Measure K Bonds and sell the next issuance of Measure G and Measure K Bonds which yields a projected savings of $34.3 million dollars to our taxpayers.”
This article was released by the Los Alamitos Unified School District.