Turlock schools save $1.76M by refinancing bond

mrowland@modbee.comMay 13, 2013 

    alternate textMarijke Rowland
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    Bio: Marijke Rowland has been a reporter at The Bee for 15 years. She grew up in the Midwest and has a degree in journalism from Indiana University. She has covered several beats at The Bee from education to entertainment to employment.
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— The Turlock Unified School District refinanced a Measure D bond to save taxpayers $1.76 million, some $600,000 more than expected.

In February, the board of trustees approved the refinancing, which at the time was expected to save some $1.1 million on the district's $10.95 million Measure D bond from 2002. Still, the individual taxpayer savings remain relatively small, some $2.63 per $100,000 of assessed value for each home.

The refinancing saves 16.2 percent of the principal financed. The bonds were sold in 2004 to Morgan Stanley at 4.91 percent. They are eligible for no-cost refinancing at today's lower interest rates.

Refinancing will cost the district about $66,000 in fees and expenses. But Superintendent Sonny Da Marto said at the time of the board's approval that the benefit to taxpayers outweighed the district's costs.

The general obligation bond Measure D was approved by voters in November 2002. The bond funds paid for the construction of Sandra T. Medeiros Elementary School and the Walnut Elementary Education Center and the modernization of Dutcher Middle School.

The district has had good luck in selling general obligation bonds, and this refinancing is the sixth since 1998.

Bee staff writer Marijke Rowland can be reached at mrowland@modbee.com or (209) 578-2284. Follow her on Twitter, @TurlockNow.

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