El Rancho Unified School District Successfully Refinances Bonds Saving Local Taxpayers Nearly $2 Million

The District refinanced a total of $9.7 million of outstanding general obligation bonds, reducing the interest rate of those bonds from 5.31% to 3.33%. The original bonds were issued from the District’s bond elections of 2003 and 2010, which funded much-needed facilities needs of the District.

The District was able to achieve low interest rates on its refinancing due to its strong credit rating of A+ by nationally recognized bond rating agency Standard & Poor’s. Credit ratings impact the relative borrowing cost of the District, and the higher the rating, the lower the interest rates and the more the community saves on interest costs. District Administration and the District’s Board of Education believe that prudent management of the District’s financial affairs, including strong budget reserves, are essential to maintaining such strong credit ratings and delivering better facilities to its students at the lowest possible costs to District taxpayers.

The refinancing has kept District administrators and the Board busy for months. “If it lowers taxes for our District’s taxpayers, I’m glad to put in the effort,” said Martin Galindo, Superintendent. “We appreciate the support of our taxpayers and will take any opportunity we can to save money. This Board and this Administration take seriously our duty to be good stewards of our taxpayers’ money,” said Board President, Dr. Aurora Villon.