A warning for many Vacaville property owners: you are going to see somewhat reduced property tax bills in the future.
Vacaville Unified refinanced $22.2 million in general obligation bonds this month, which will save school district landowners $3.1 million in reduced tax payments, officials said. district leaders in a press release issued Thursday.
In November 2014, district voters approved Measure A, the $194 million general obligation bond to pay for technology upgrades, renovations to existing buildings, and new construction of schools in the district.
Since then, the district has sold all Measure A bonds, said district spokeswoman Elaine Kong.
The latest bond sale refinanced part of the “first set of bonds issued in 2015 for taxpayers’ savings,” she added in the prepared statement.
Average interest rates on 2015 bonds were 4.02%. The true interest cost on the new bonds is approximately 2.91%. The difference in borrowing rates will save property taxpayers a total of $3,072,514 over time without extending the original term of the loan, Kong noted.
The news comes as the country’s central bank began raising interest rates from near zero in March and plans to raise them to nearly 3.5% by the end of the year.
Commenting on the district’s decision, Superintendent Jane Shamieh said, “We are delighted that we were able to move quickly to take advantage of this unique opportunity to secure savings for our community, especially in light of rising rates of ‘interest.”
Board Chairman John Jansen also welcomed the refinancing, saying it would ease the tax burden on property owners while stressing the need for the district to be financially prudent.
“We greatly appreciate our community’s ongoing support of our local schools and are thrilled to be able to ease the burden on taxpayers through this refinancing,” he said in the statement. “While education is the District’s primary focus, we are also committed to being good fiscal stewards, including looking out for our local ratepayers.”
The bond refinancing was approved by the District Board of Directors on May 26.