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District reports nearly $900,000 in taxpayer savings from bond refunding
Summary
K&N Public Finance reported successful refunding of roughly $20.6 million of general obligation bonds, locking a 2.587% interest cost and producing about $900,000 in taxpayer savings over the refunding period; Standard & Poor’s affirmed an A+ rating for the district.
The Marysville Joint Unified School District’s recent refunding of outstanding general obligation bonds will reduce borrowing costs and provide ongoing savings to taxpayers, a financial adviser told trustees.
Blake Beam of K&N Public Finance reported the district sold about $20.6 million of refunding bonds with a true interest cost of 2.587 percent, compared with an average coupon of about 3.4 percent on the refunded debt. "Locking in taxpayer savings of nearly $900,000," he said, describing favorable market conditions and an A+ rating from Standard & Poor’s that broadened investor demand.
Beam said the refunding did not extend the repayment term (final payoff remains Aug. 1, 2033) and that annual savings of more than $100,000 will accrue through the remainder of the repayment period. The transaction’s final costs—underwriting, legal and advisory fees—were reported to the board and deducted before calculating net savings.
Trustees asked how homeowners would experience the savings; Beam said the county sets property-tax levies and that once the county receives the new debt‑service figures it will adjust levy positions so homeowners receive their proportionate share of the lower annual rates over time.
Board members received the report and had no substantive objections; staff will continue to coordinate with county officials on levy adjustments and to post full transaction documents.
