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Meeting Date:
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6/23/2021 - 6:00 PM
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Category:
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Reports/Information
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Type:
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Info
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Subject:
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12.2 Review the Refinancing of District General Obligation Bonds
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LCAP (Local Control Accountability Plan) Goal:
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Goal 1: All students will receive a high quality education in a safe and welcoming environment with equitable and high expectations, access to technology, and instruction in the California State Standards that prepare them for college and career.
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Enclosure
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File Attachment:
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Summary:
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Three of Mt Diablo Unified's outstanding general obligation (GO) bond series are eligible for refinancing to lower interest rates. This is similar to refinancing a home mortgage when current interest rates are lower than the rate of the initial mortgage. Our bonds can now be financed to lower the borrowing costs. Refinancing the bonds will not extend their term of financing.
Based on current interest rates that are near historic lows, the estimated savings from refinancing is approximately $4 million dollars, savings that will be passed on to the District's taxpayers through lower annual property tax rates. All costs associated with the refinancing will be paid out of the financing's proceeds and there will be no costs borne by the District.
Subject to Board approval, new GO Refinancing Bonds will be sold to investors. The proceeds of these bonds will be used to prepay and refinance the outstanding bonds will be used to prepay and refinance the outstanding bonds.
At the August 11, 2021 Governing Board meeting, staff will bring back the specifics and all pertinent disclosures for public review and Board approval.
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Funding:
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Fiscal Impact
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Savings of approximately $4 million for MDUSD taxpayers
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Recommendation:
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Informational.
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Approvals:
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Recommended By:
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Signed By:
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Dr. Lisa Gonzales - Chief Business Officer
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Signed By:
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Dr. Adam Clark - Superintendent
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