Benicia Unified School District
350 East K Street
Benicia, CA 94510
https://beniciaunified.org/
PRESS RELEASE
FOR IMMEDIATE RELEASE
Benicia Unified School District Refinances Bonds, Saves Taxpayers Money Again
Benicia, CA – May 6, 2022. Benicia Unified School District has once again refunded old bonds to save property taxpayers money. This most recent refinancing, which will save taxpayers nearly one million dollars, follows prior refinancings dating back to 1997.
Previously, the District has refinanced bonds approved by voters from three different elections in 1991, 1997, and 2014. The 1991 bonds have been completely paid off and the 1997 bonds are due to be paid off in the next few years. This current refunding was from the 2014 election. Bond proceeds from each of those elections were used to build new classrooms and school facilities, as well as modernize and upgrade existing classrooms, labs, and athletic facilities throughout the District.
Due to the covid pandemic and recent geopolitical concerns, interest rates have been extremely low these last several months. The old 2014 bonds that were refunded carried interest rates of 4.00% and 5.00%, while the new bonds carry interest rates of 3.65% until 2025 and then 2.65% thereafter until 2039, a difference that will save property taxpayers $950,097. The refinancing will not extend the final payment of any of the prior bonds.
Superintendent Charles Young stated, “Our community has been very supportive of our schools over the years and in turn we wanted to give back to them by saving taxpayer dollars. 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.” Chief Business Official Tim Rahill added, “The District is very pleased that the bond refinancing is able to save nearly one million dollars for our community.”
The refinancing of the bonds was authorized unanimously by the Benicia Unified School District Board at their April 7, 2022 board meeting. Property owners in the District will see reduced tax rates on future tax bills.
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