On May 17, 2012, the Albany Unified School District’s Board of Education took advantage of historically low interest rates in the municipal bond market to refinance some of the District’s outstanding bonds. Similar to refinancing a home to a lower interest rate mortgage, proceeds of the new bonds are used to “pay-off” the older bonds; the new bonds have lower interest rates than the older bonds, thereby reducing annual payments. The lower payments mean savings to taxpayers. In this case, taxpayers will save almost $2 million over the life of the debt.
With municipal bond rates at historic lows, the District was able to refinance at an all-in cost of 2.59%. The original bonds were issued from 2001-2004 to build the middle school, the high school, and modernize other school sites. The bonds are being sold to the underwriting firm of Stifel, Nicolaus & Co., who was the lowest of seven (7) bidders in a competitive sale.
The refinancing will not affect the District’s operating costs or provide any additional resources to the District. Rather, it represents the commitment of the Board of Education to the District’s taxpayers. As a result of the refunding, the typical homeowner will pay approximately $337 less in property taxes over the next 18 years.
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With municipal bond rates at historic lows, the District was able to refinance at an all-in cost of 2.59%. The original bonds were issued from 2001-2004 to build the middle school, the high school, and modernize other school sites. The bonds are being sold to the underwriting firm of Stifel, Nicolaus & Co., who was the lowest of seven (7) bidders in a competitive sale.
The refinancing will not affect the District’s operating costs or provide any additional resources to the District. Rather, it represents the commitment of the Board of Education to the District’s taxpayers. As a result of the refunding, the typical homeowner will pay approximately $337 less in property taxes over the next 18 years.
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