Lower Lake, CA – May 4, 2016: In April, the Konocti Unified School District refinanced $5.675 million in general obligation bonds which will save District property owners over $970,000 in taxes. The District took advantage of very low interest rates to refinance its Election of 2004 Series B and Series C Bonds. The Series B Bonds were originally sold in December 2006 in the amount of $4.5 million and the Series C Bonds were sold in September 2007 for $3.4 million.
The Series B and Series C Bonds were authorized by more than 71% of Konocti Unified School District voters at an election held on November 2, 2004 and were used to build new libraries, replace and repair classrooms and other school buildings, and build a new gym. Interest rates on the refinanced bonds ranged between 4.00% and 4.20%. The borrowing cost for the new Bonds is 2.40%, a difference that will save property taxpayers $970,052.59 for the refinancing.
Superintendent Donna Becnel stated, “With interest rates near historic lows, we felt it was the right thing to do to save our community money.” Laurie Desimone, Chief Business Official added, “Part of my job as CBO is to keep an eye on our bonded debt obligations and seek opportunities to reduce property taxes.”
The refinancing of the bonds was unanimously approved by the District Board of Trustees on March 16. “We know that our community supports our schools, and as stewards of taxpayer dollars, we felt this bond refinancing was the right thing to do,” said Board President Sue Burton.
Property owners in the District will see a reduced property tax rate on future tax bills.