Turlock Unified School District has excellent news for taxpayers: through three general obligation bonds, taxes will be lowered, saving an approximate $4.24 million.
“This is great news for both our district and community,” said TUSD Board President Frank Lima.
In June, TUSD’s voter-approved Measures N, Y, and Z General Obligation (GO) Bonds were refinanced at lowered interest rates. The District provided refunding bonds to cover issuance incidentals and refinance these three measures at $29.8 million, to mature after June 1, 2015. The winning competitive sales bids were submitted by Robert W. Baird & Co., Inc., for the newly refinanced bonds.
The first approved by voters in November 1996, Measure N GO Bond Measure resulted in the addition of John H. Pitman High School to the district. In November 2006, Measure Y was approved by voters to advance the process of modernizing both Turlock and Roselawn High Schools. Measure Z was accepted that same month to broaden modernization projects to eight schools: Brown, Crowell, Cunningham, Dutcher, Julien, Osborn, Wakefield, and Crane’s Early Learning Center, which is now eCademy Charter at Crane School.
Earlier in June, TUSD refinanced the 2005 Certificates of Participation (COP) through a 2015 Refunding Lease/Purchase. The District issued the 2005 COP to finance the addition of a 12 classroom wing at Pitman High School and modernization work at Dutcher Middle School and Turlock High School. Sterling National Bank purchased the lease with an interest rate of 3%. Savings to TUSD are approximately $721,000, or $584,000 on a net present value basis.
TUSD taxpayers invested trust in the District when they approved the bonds and these new refinances and COP’s continue to maintain the District’s intent to manage debt. By refinancing bonds, the District is reducing interest costs and using taxpayer money in good taste.
Financial adviser Government Financial Strategies, Inc. and bond counsel Kronick, Moskovitz, Tiedmann & Girard served TUSD in the sale of COP’s and bonds.
“Both firms are based in Sacramento and our team effort has produced significant savings for TUSD and the Turlock Community,” said TUSD Superintendent Dana Salles Trevethan.