PUSD refinances bonds, saves taxpayers money

Last month Porterville Unified School District refinanced portions of its $23 million Election of 2002, General Obligation Series 2004, Series 2007C and Series 2007D Bonds, which will save district property owners over $1.8 million in taxes (or, 8.6% of refunded bonds).

The bonds were authorized by more than 55% of Porterville Unified School District voters at an election held in 2002 and were used to construct a new middle school, new elementary schools, and repair/ renovate classrooms, restrooms, plumbing, electrical systems, and other campus facilities improvements.

Interest rates on the old Series 2004, 2007C and 2007D Bonds ranged between 3.95% and 4.93%. The interest rates for the new bonds range between 1.80% and 4.46%, a difference that will save property taxpayers over $1.8 million. The final payment of the new bonds will remain the same as the original August 1, 2037 payment of the Series 2007C Bonds.

“The PUSD Governing Board and District staff identified an opportunity to refinance the District’s debt obligations and save taxpayers money; this was something we could not pass on,” PUSD Superintendent Nate Nelson said.

“Interest rates were very low at the time of the refunding. This allowed us to capture significant taxpayer savings by refinancing the Series B and Series C Bonds when we did,” PUSD Assistant Superintendent for Business Services Brad Rohrbach said.

The refinancing of the bonds was authorized unanimously by the Porterville Unified School District Board at the September 27th board meeting.

“We are absolutely thrilled with this fantastic result for our community,” PUSD Board President Pete Lara said. “To save local taxpayers money is a huge win for the district and its constituents.”

As a result of the Board’s action, property owners in the District will see a reduced tax rate on future tax bills.