Under the leadership of the Los Alamitos School Board, the Los Alamitos Unified School District chose to take advantage of historically low interest rates to refinance some of its old G.O. Bonds without extending the term of those Bonds.
The District selected the right time to refinance the Bonds and was able to reduce the interest rate on the prior Bonds from 6.06 percent to 3.07 percent, reducing the community’s tax bill by about $3.948 million.
Under the leadership of the Los Alamitos School Board, the Los Alamitos Unified School District chose to take advantage of historically low interest rates to refinance some of its old G.O. Bonds without extending the term of those Bonds.
The District selected the right time to refinance the Bonds and was able to reduce the interest rate on the prior Bonds from 6.06 percent to 3.07 percent, reducing the community’s tax bill by about $3.948 million.
During the past few years, the District has consistently sought to benefit local taxpayers by seizing opportunities to refinance old General Obligation Bonds that have higher interest rates and replace them with new Bonds that have lower interest rates. Since 2015, the District’s actions will have saved taxpayers about $6.252 million.
While the District itself will not receive any part of the savings, the Board, the Superintendent and District staff pursued this opportunity strictly on behalf of local taxpayers because of their continued support for the education of young people. In summary, the 2016 refinancing includes $3,948,478 of savings, average Old Interest Rate: 6.06%, average New Interest Rate: 3.07%, all Current Interest Bonds, no Capital Appreciation Bonds, no Extension of Maturities, and 1.58 to 1 Repayment Ratio.