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Vacaville Unified School District Refinances Bonds, Saves Taxpayers more than $4 Million Dollars
Posted 7/28/20

Vacaville Unified School District

401 Nut Tree Road

Vacaville, CA  95687

http://www.vacavilleusd.org/

 

 

PRESS RELEASE

 

 

Vacaville Unified School District Refinances Bonds, Saves Taxpayers more than $4 Million Dollars

Vacaville, CA – July 28, 2020:  In July, the Vacaville Unified School District refinanced $39.56 million in general obligation bonds which will save District property owners over $4,190,000 in property taxes.  The District took advantage of very low interest rates due to the coronavirus pandemic and overall economic uncertainty to refinance three series of 2014 General Obligation Refunding Bonds.  

On November 6, 2001, District voters authorized the sale of up to $101.3 million of general obligation bonds to renovate schools, upgrade facilities, equipment, and technology, and make safety and health improvements.  Some bonds issued under the 2001 Authorization were refinanced in 2005 and then again in 2014.

Interest rates on the 2014 Refunding Bonds were 5.0%.  Rates on the new bonds range from 0.403% to 1.959%, a difference that will save property taxpayers $4,190,185 without extending the original term of the borrowing.  The final payment of the new refunding bonds will remain the same as the original August 1, 2030 and August 1, 2032 payments of the old 2014 Refunding Bonds.  

Superintendent Jane Shamieh stated, “With interest rates near historic lows, we wanted to take this opportunity to save our community money, particularly in light of the downturn in the economy.”  

The refinancing of the bonds was authorized by the Board of Trustees on March 19th.  “We know that our community supports our schools, and in turn we wanted to give back to our community by saving taxpayer dollars,” said John Jansen, Board President.  “While the education of local students is a core mission of the District, we also try to be mindful of all of our District responsibilities, and that includes looking out for our taxpayers.”

Property owners in the District will see a reduced property tax rate on future tax bills.