Parlier Unified School District Refinances Bonds, Saves Taxpayers more than $1.5 Million Dollars
Parlier, CA – May 13, 2022: Earlier this month, the Parlier Unified School District refinanced $4.375 million in general obligation bonds which will save District property owners more than $1.5 million in property taxes. The District took advantage of low interest rates due to the coronavirus pandemic and overall economic uncertainty to refinance two series of Election 2014 General Obligation Bonds.
On June 3, 2014, District voters authorized the sale of up to $6.0 million in general obligation bonds to renovate outdated classrooms, restrooms and school facilities; upgrade P.E. field and facilities for school and community use; and construct a cafeteria/multi-purpose room at Parlier High School.
Interest rates on the 2014 Bonds were 5.00%. Rates on the new bonds will start at 3.60%, but will have an option to convert to a lower interest rate of 2.63% starting on August 1, 2024. The difference in interest rates will save property taxpayers $1,511,993 without extending the original term of the borrowing. In fact, the final payment of the new refunding bonds is two years earlier than the original August 1, 2044 final payment of the old 2014 Bonds. Savings as a percentage of refunded bonds is a spectacular 19.4%.
Superintendent Guerrero stated, “With interest rates well below historic averages, we wanted to take this opportunity to save our community money.”
The refinancing of the bonds was authorized by the Board of Trustees on March 22nd. “We know that our community supports our schools, and in turn we wanted to give back to our community by saving taxpayer dollars,” said Eric Molina, Board President. “While the education of local students is a core mission of the District, we also try to be mindful of all of our District responsibilities, and that includes looking out for our taxpayers.”
Property owners in the District will see a reduced property tax rate on future tax bills.