The Los Gatos-Saratoga Union High School District announced yesterday it had refinanced some of its debt at a lower interest rate.
School board officials put the savings to local property tax payers at $3.6 million.
The move covers $33.8 million in general obligation bonds related to Measure E, which was approved by voters in 2014.
“Our community has always supported the District, most recently with the renewal of our parcel tax,” said Los Gatos-Saratoga Union High School District Superintendent Bill Sanderson. “With interest rates lower than when the original bonds were sold, we wanted to take this opportunity to lower property taxes for our residents.”
Proceeds of Measure E funded the modernization of school facilities, health and safety improvements, technology upgrades and new buildings, a spokesperson said.
The District sold its first series of Measure E bonds in 2014 for $45 million. Then in 2016, the District sold its second series for $54 million. Both sales occurred when interest rates were much higher.
Interest rates on the bonds were between 3% and 5%. The new rates range from 2.97% to 4.03%. The original borrowing timeline remains the same.
Assistant Superintendent of Business Services Ruben Fernandez is in charge of monitoring these debt payments.
“This includes looking for opportunities to save the District and our residents money,” he said. “We were able to do that here and save our community $3.6 million in taxes.”
Property owners in the District will see a reduced property tax rate on future tax bills.
