WESTMINSTER, Calif., March 24, 2016 /PRNewswire/ -- The Westminster School District has successfully refinanced outstanding general obligation bonds, which will save the district's property owners nearly $3 million in taxes. The refunding bonds, totaling $21.33 million, were originally authorized by 63% of voters at the November 2008 election and were used to construct, upgrade and repair classrooms and school facilities throughout the District. The interest rate on the outstanding bonds from the previous authorization was 4.52%. The interest rates for the new bonds will be between 0.38% and 3.18%, a difference that will save property owners $2,983,910.
Additionally, the District has successfully refinanced outstanding Certificates of Participation, which will save local taxpayers and property owners another $2.3 million in taxes. The refunding certificates, totaling $14.37 million, were originally issued in 2006 and were used to upgrade technology and cafeteria facilities throughout the District.
Supporting the District in their refinancing was Orange County Treasurer Shari L. Freidenrich, "Being the steward of taxpayer dollars for the County and the banker for school districts, I was very pleased with the outcome of the most recent bond refinancing for the Westminster School District. Working closely with the Superintendent at Westminster School District and their financial advisor Isom Advisors, we have been able to take advantage of lower long-term interest rates to refinance existing voter-approved debt at lower rates. The School District has saved over $5 million of taxpayer dollars in their last two refinancings; that's a win-win for taxpayers in the Westminster School District."
The refinancing of the bonds was authorized by the District Board at their January 21, 2016 meeting. The Board of Education has emphasized strong fiscal oversight with the stated goal in the Local Control Accountability Plan to ensure fiscal health through investing in today while planning for tomorrow. "We know that our community supports our schools and, as stewards of taxpayer dollars, we felt this bond refinance was the right thing to do," said Board of Trustees President, Jamison Power. Dr. Marian Kim Phelps, Superintendent, added, "With interest rates near historic lows, we felt it was the right time to take action and save our community and tax-payers money over the long-term and utilize savings to serve our students today."
Dr. Phelps led the District to contract with Isom Advisors and Raymond James & Associates, which culminated with the successful refinancing actions supporting the Westminster School District. Property owners in the District will see a reduced tax rate on future tax bills over the course of the loans.
The Westminster School District serves approximately 9,500 students in grades K-8 at 17 schools in the cities of Westminster, Garden Grove, Huntington Beach and Midway City.
WESTMINSTER SCHOOL DISTRICT
CONTACT: TRISH MONTGOMERY
PUBLIC INFORMATION OFFICER
(714) 894-7311, EXT. 1004
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SOURCE Westminster School District