The Lakeside Union School District Board of Trustee approved the refinancing of over $17 million of Proposition V bonds. As presented by the district's financial advisor, Dale Scott & Company, based on current interest rates, refinancing the Series A bonds from the 2008 bond measure could save taxpayers approximately $2.5 million without lengthening the pay-back period. Taxpayers would see these savings in the form of lower annual property tax rates.
"As we strive to deliver the high-quality, 21st-century education that our students deserve, we are still mindful of the costs to local taxpayers," said Keith Hildreth, president of the LUSD Board of Trustees. "We are pleased with the potential opportunity to pass these savings on to the taxpayers in our community."
"We are committed to fiscal responsibility for the taxpayers of Lakeside Union School District," said LUSD Board of Trustees member Twila Godley. "This is the second bond refunding we've pursued in the last year, and we will continue to look for ways to even further reduce costs and the burden on taxpayers."
In 2015, LUSD took advantage of an opportunity to restructure a portion of its Proposition V Series B capital appreciation bonds. The innovate approach allowed the district to refinance non-callable capital appreciation bonds, saving taxpayers over $9.3 million.
"Lakeside Union School District has worked energetically to cut costs to taxpayers," said Dale Scott, president of DS&C, the financial advisor for LUSD. "Initiating this latest bond refunding will allow the district to take advantage of historically low interest rates while also reducing tax rates, which is a 'win-win' for the district and its taxpayers."
The refinancing is expected to be completed in early November, at which point the new interest rates will be locked and the savings to taxpayers set.