District refinances GO bonds
LANCASTER — The Lancaster School District successfully refinanced a portion of Measure L, the $63 million General Obligation bond measure passed by local voters in November 2012, resulting in more than $2.5 million in savings for local taxpayers who will see lower property taxes over the remaining life of the bonds, the District announced Tuesday.
The transaction is similar to a homeowner refinancing a home loan to take advantage of low interest rates.
This transaction comes at a time when the community is coping with the economic impacts of COVID-19 and relieves some of the tax burden on homeowners, District officials said.
The Board of Trustees unanimously directed its staff and Financial Advisor, CFW Advisory Services, at its Aug. 3 Board meeting, to refinance its General Obligation bonds, providing relief to taxpayers.
The District’s bonds are deemed highly desirable by investors based on the Dis
trict’s strong S&P Global credit rating of “A+,” despite the prevailing economic uncertainty due to COVID-19.
These positive factors enabled the District to lock in an interest rate of 2.6% for the remaining life of the bonds, which represents a near historic low for this type of transaction, according to the District.
The transaction closed on Tuesday. Los Angeles County will be provided a lower payment schedule for the refinanced bonds.
“The Board’s action reflects our continued commitment to looking out for our taxpayer’s interests,” Board President Duane Winn said in a statement. “We are pleased that this action will benefit our residents, especially during this difficult time for many of our families.”
Superintendent Michele Bowers said in a statement that they greatly value the support the school district receives from the community and are happy that the refinancing saves local taxpayers $2.5 million.