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Natomas Unified says bond refinance will lower tax levy, yielding about $6.9M in savings
Summary
The board received a presentation on a $76.74 million bond refinancing that officials said produced a 3.13% true interest cost and an estimated $6.9 million in debt-service savings over 17 years, with redemptions scheduled for August and tax-rate effects expected in FY 2026–27.
The Natomas Unified Board heard results of a competitive sale to refinance $76,740,000 of district bonds that, presenters said, produced a true interest cost of 3.13% and ‘‘over the next 17 years, $6,900,000’’ in savings for taxpayers. Doug Orr introduced the presentation and finance partner Lori Ranieri walked trustees through rating, bidding and expected timing.
Ranieri said Moody’s affirmed a Aa2 rating and that a competitive sale generated multiple bids, including Jefferies and Morgan Stanley. ‘‘Our borrowing rate was a true interest cost of 3.13,’’ she said, and staff estimated net present-value savings above board best-practice thresholds. Ranieri also told trustees funds are in escrow, investors will be notified in July and bonds will be redeemed August 1, which staff said would result in a lower tax levy for fiscal year 2026–27.
Supporters on the board praised the work as fiscal stewardship and said the savings could modestly lower individual tax bills. Trustee comments noted the savings increase the district's capacity to pay down debt faster with less interest but did not commit to any specific future bond issuance. The presentation included a chart showing an estimated tax-rate change and a projection that the refinancing produced roughly 10% of the voter-approved bonds in debt-service savings.
