The Galt Joint Union High School District sold bonds to refinance previous bonds that were sold by the district in 2006 and 2007.
District voters originally approved the $29.2 million Measure B bond authorization at an election in 2005. The outstanding Measure B bonds had interest rates ranging from 3.85 percent to 5.25 percent.
However, historically low interest rates allowed the district to refinance a substantial portion of the Measure B bonds at an interest rate of 3.03 percent, which will save property taxpayers in the district $2.6 million over the next 18 years, according to the bond underwriter, George K. Baum & Company.
The action was taken late last month.
Credit rating agency Standard & Poor’s Ratings Services assigned the district’s bonds a credit rating of “A+,” citing the district’s slowly diversifying local economy, stabilizing average daily attendance, maintenance of strong available general fund reserves and moderate overall debt, according to a press release.
“The board’s willingness to move forward on the refinancing transaction demonstrates its continued commitment to fiscal responsibility,” Superintendent Matthew Roberts said in a prepared statement. “During these uncertain economic times, we feel fortunate to have been able to take advantage of this opportunity to save taxpayers money and demonstrate the district’s fiscal priorities.”