Local municipalities and districts are saving money by refinancing bonds under current low interest rates.
Marysville Joint Unified School District sold about $28.5 million in general obligation bonds, and Yuba County approved the sale of $78.37 million in revenue bonds.
Voters passed both bond measures in 2008 when interest rates were around 5 percent; rates are now around 3 percent. The process of refunding bonds is similar to refinancing a mortgage except the original term of the debt is not extended. After refinancing, MJUSD and the county will have lower debt service payments.
MJUSD refinanced the Measure P general obligation bonds that will save the district nearly $4.6 million and homeowners an estimated average of $172 in property tax over the next 18 years, according to a press release from the district.
Voters approved the Measure P bonds in 2008 and the original interest rate in 2009 was 5.17 percent. The new rate will be 2.97 percent. The sale of the Measure P bonds took place Oct. 25 and financing will close Nov. 10.
The Yuba County Board of Supervisors and the board of directors for the Yuba Levee Financing Authority and Yuba County Water Agency all approved resolutions to refinance the 2008 Series A and Series B bonds, which will save the county about $1 million a year in debt service payments through 2038, according to staff reports.
The Yuba River Levee Financing Authority was created by the YCWA to handle the funds in 2008. Three Rivers Levee Improvement Authority handled the levee improvements.
That money will go back into the general fund and can be used for other projects not covered by the bond money.
The refinanced bonds will be likely go on sale Nov. 17, a week after a credit rating is issued.
CONTACT Reporter Kirk Barron at 749-4796