Concord, CA – Mt. Diablo Unified School District recently completed the refinancing of $42.1 million in general obligation bonds, saving taxpayers nearly $5.9 million over the next eight years.
The District took advantage of still low interest rates due to economic uncertainty and the federal government’s inflation-fighting rate policies to refinance bonds originally sold in 2013 when interest rates were higher. The District Board of Trustees unanimously approved the refinancing of the bonds on March 22, 2023.
District voters approved the original bonds in 2002 and subsequently refinanced them in 2013; this is the second time the District has been able to lower rates on those original bonds. The funds from the 2002 election bonds were used to build new school facilities and provide for renovations and classroom improvements to existing schools. Interest rates on the refinanced bonds ranged from 4.0% to 5.0%, while the borrowing cost for the new bonds ranges from 2.0% to 2.57%. This difference in rates will save property owners $5,881,937.
“Once again the District has been able to refinance bonds to save taxpayers’ money,” said Superintendent Dr. Adam Clark. “In fact, in just the past two years we’ve been able to save property owners more than $54.8 million without extending the final payment on the bonds.”
Last year, the District refinanced $198 million in bonds, saving taxpayers $49 million through 2038.
Chief Business Officer Dr. Lisa Gonzales said she keeps an eye on the District’s debt obligations and looks for opportunities to save money for our community. She added, “We were happy to have yet another opportunity to lower our bond payments.”
