Gilroy Unified School District Refinances Bonds,
Saves Taxpayers Millions
PRESS RELEASE (Gilroy, CA, - February 26, 2015:)
Gilroy Unified School District has refinanced outstanding general obligation bonds, which will save the district’s property owners over $3.8 million in taxes. The refunding bonds, totaling $35.3 million, were originally authorized by 67.6% of voters at the November 2008 election and were used for construction of Christopher High School and for construction and modernization projects throughout the District. The interest rates on the outstanding bonds from the 2008 authorization ranged between 4.13% and 5.30%.
The interest rates for the new bonds issued February 19th will be between 0.30% and 2.38%, a difference that will save property owners $3,880,936.25.
In addition to the recent refinancing, the Gilroy Unified School District has been presented with opportunities to lower the cost of borrowing for its taxpayers in the past. In 2013, the District completed a financing that saved taxpayers an estimated $50 million by refinancing prior debt at lower interest rates and utilizing an innovative financing structure to avoid the use of capital appreciation bonds (CABs) while staying within the tax rate limit of the bond program.
“Our office is diligent in monitoring our debt obligations and will seek any opportunity to help property taxpayers reduce their tax liability,” said Alvaro Meza, Assistant Superintendent of Business Services. Superintendent Dr. Deborah Flores added, “In this historically low interest rate environment, we felt it necessary to take action, lock in low rates, and save our community money.”
The refinancing of the bonds was authorized by the District Board at their December 11th meeting. “As fiduciaries to our community, our board felt saving property taxpayer money in this low interest rate environment was the right thing to do…” said Board of Trustees President, James E. Pace.
Property owners in the District will see a reduced tax rate on future tax bills.
(Contact: Alvaro Meza, Assistant Superintendent Business Services - (408) 848-7116)
STATEMENT OF NON-DISCRIMINATION
(Title VI of the Civil Rights Act of 1964, Title IX of the Education Amendments of 1972 section 504 of the Rehabilitation Act of 1973):
The District does not discriminate against any person on the basis of gender, race, color, religion, national origin, ethnic group, actual or perceived sexual orientation, marital or parental status, physical or mental disability. The District will take steps to assure that the lack of English will not be a barrier to admission and participation in District programs. Complaints alleging noncompliance with this policy of nondiscrimination should be directed to:
The District’s Title IX Coordinator is Kim Filice, Director – Human Resources. Mrs. Filice’s contact information is email@example.com or at 408-848-7131.
The District’s 504 Coordinator is Barbara Brown, Director – Student Services. Mrs. Brown’s contact information is firstname.lastname@example.org or at 408-848-7139.