Measure "O" Bond Refinanced to Save Maricopa Taxpayers Nearly One-Half Million!!
Maricopa Unified School District Refinances Bonds;
Saves Nearly One-Half Million for Local Taxpayers
June 16, 2015 – Maricopa, California – The Maricopa Unified School District successfully refinanced approximately $4.2 million in Measure “O” general obligations bonds, saving taxpayers over $494,000 in debt payments.
Measure “O” was approved by an overwhelming majority of District voters in 2005 to fund various school facility improvements and modernization efforts. Shortly after receiving voter approval, the school district sold the bonds in 2005 and 2006. The bonds, a form of municipal government loan, were to be repaid over time from property taxes.
Similar to refinancing a home mortgage, the district may avail itself of prevailing low interest rates to refinance the amount outstanding in order to lock-in lower interest rates.
“We also see ourselves as remaining good stewards of our community’s resources,” said the District’s superintendent, Dr. Scott Meier. “We were able to take advantage of a unique opportunity to save money for our families and business community.”
The nearly one-half million in debt savings were generated by replacing the old bonds carrying an average interest rate of approximately 4.33%, with new bonds at substantially lower rate of 2.31%. For the average homeowner, this translates to over $27.00 in savings over the repayment term of the bonds. Savings are passed directly to local taxpayers in the form of reduced property tax bills.
“The Board of Trustees and District Staff greatly value the support we receive from our community,” said Rene Adamo, Board President. “We are very pleased to have completed the refinancing with every bit of the benefit going directly to them.”
Please contact the Dr. Meier at the District with any questions or comments regarding the bond refinancing at 661-769-8231.
Maricopa Unified School District
2015 Bond Loan Refunding
Proceeds: the total amount of Series 2005 and Series 2006 refunded bonds were $4,205,000.
Savings: generated gross savings of $494,272.38, an increase of approximately $70K from the initial estimate.
Percent Savings: the 9.5% net present value savings were increased from the initial estimate of 7.4%.
Average Homeowner Savings: total estimated tax rate savings increased to approximately $27.75 over the term of the bonds.
Interest Rate: the average interest rate on the refunding bonds was locked in at 2.31%, a reduction from 4.33% on the prior bonds.
Term: the final term of repayment remains unchanged at 11/1/2029.
Call: the 2015 refunding bonds are not callable (eligible for an additional refinancing) in the future
Costs: issuance costs and expenses totaled $114,392.71, a decrease from the initial estimate of $120,000. (To be paid directly from bond proceeds, not District funds.)