A bond refund could mean $8.1 million in savings to taxpayers, thanks to action taken by the Hart District Board Wednesday night.
Voters in the William S. Hart Union High School District approved Measure V, a $158 million bond measure in November 2001. Series A of Measure V Bonds were sold in May 2003. The District has an opportunity to “refund” the first series of Measure V Bonds.
The Hart Governing Board approved a resolution at a special board meeting Wednesday night to start the process.
Much like homeowners can refinance their homes when the interest rate is favorable, California law allows school districts to issue refunding bonds to “refinance” all or a portion of the bond issue providing it results in a net savings to the taxpayers.
Currently the interest rates are very favorable to refunding the bonds. As interest rates have fluctuated, potential taxpayer savings have ranged from $2.9 million to $8.1 million over the past five months. The overall savings projection based upon the interest rates as of Jan. 24, 2012 is $8.1 million. The District’s financial advisors will continue to monitor the interest rates on a daily basis to maximize the savings to the taxpayers.
“As a school district, we have a responsibility to monitor district expenditures and to ensure that our taxpayers are not overburdened, “Rob Challinor, Superintendent, stated. “This action reflects a very prudent decision by our school board.”