News

Friday, July 13, 2012

Santa Barbara Unified School District Completes 2012 Refunding, Measure Q Bond Sale

The Santa Barbara Unified School District recently took advantage of historically low interest rates in the municipal market to refund approximately $27.7 million of its outstanding general obligation bond debt. On average, the refunding bonds reduced debt service payments by over $235,000 per year, collectively saving local taxpayers over $4 million through 2029.

Similar in concept to the financing of a home mortgage, the district issued the 2012 General Obligation Refunding Bonds, Series A and B, to "pay off" certain outstanding bonds. The new refunding bonds were sold with significantly lower interest rates than the outstanding bonds, thereby reducing annual payments.

The refundings do not impact the district's operating budget or in any way help to ameliorate ongoing budget issues, but represents a commitment by the district to the local taxpayers who pay for school bonds.

Additionally, the district recently sold $15 million of general obligation bonds authorized under the 2010 Measure Q election for the purposes of maintenance and renovation on its junior high and high school campuses.