Turlock Unified saves taxpayers $4.2 million by refinancing bonds

Turlock Unified took advantage of lower bond rates to refinance much of its $49 million in outstanding principal authorized by voters to build and modernize schools.

The fiscal redo will save $4.2 million in taxes for property owners within the Turlock Joint Unified School District boundaries, said Roger Smith, district director of facilities and planning. The savings will be reflected in slightly lower taxes each year through 2032. The borrowing time period remains unchanged.

A refinance in 2013 saved $1.3 million from Measure D bonds, passed in 2002 to build Walnut and Medeiros elementary schools, Smith said.

The bonds refinanced this summer stemmed from Measure N, passed in 1997 to build Pitman High; Measure Z, passed in 2006 to refurbish elementary schools; and Measure Y, passed in 2006 to make over Turlock High’s gyms and Performing Arts building.

The goal was savings in the 3 percent to 5 percent range, bond consultant Lori Raineri told trustees at their August meeting, adding, “We blew that out of the water.” Raineri is president of Government Financial Strategies of Sacramento.

“Turlock schools does it right,” she said, referring to its management of school bonds debt. “The taxpayers have voted for these, the least we can do is find the best rate we can get.”

The savings could be achieved because the bonds did not have caveats prohibiting refinancing. Some of the new issues will not be able to be refinanced again but also take advantage of historically low interest rates.

Renovations are continuing for a second year on what is being called the West Gym, but for generations of Bulldogs has been the girls gym. Students are able to access the finished locker room, however, through what was an office, said Assistant Superintendent Mike Trainor.

The Performing Arts building still lacks audience seating, expected to arrive in September, Trainor said, but should be ready for fall performances starting in October.

This story was originally published August 23, 2015 at 3:34 PM with the headline "Turlock Unified saves taxpayers $4.2 million by refinancing bonds."