MUHSD Bond Refinance Saves Taxpayers $15.8 Million
Atwater, CA (June 9, 2020) - Merced Union High School District (MUHSD) refinanced some of its outstanding general obligation bonds to generate approximately $15.8 million in property taxpayer savings over time. MUHSD was able to price bonds in a relatively strong and stable market on May 21st to lock in taxpayer savings and the sale officially closed on Thursday, June 4, 2020.
MUHSD worked closely with its financing team to monitor the municipal market, which has seen historically low interest rates due in part to the coronavirus pandemic. Interest rates on the new 2020 Refunding Bonds, which average just over 3.85%, will be replacing the prior bonds with an average interest rate of 5.30%. This difference in interest rates between the new and prior bonds will save property owners $15,798,401.30 in future bond repayments.
“Our community is very supportive of our schools, and with all of the recent challenges, it’s great to be able to do something positive for our community by locking in refunding savings,” said MUHSD Superintendent Alan Peterson.
The refunded bonds are part of the 2008 Measure M authorization. In November 2008, district voters approved Measure M, a $149.45 million bond authorization which MUHSD has used to upgrade, renovate, modernize and construct classrooms and school facilities at its high schools. The 2020 Refunding Bonds were approved by the Board of Trustees on May 13th.
“The Board set clear expectations that we wanted to achieve substantial taxpayer savings with this refunding,” said MUHSD School Board President Richard Lopez. “We are very pleased that we were able to surpass those savings targets.”