KELSEYVILLE — The Kelseyville Unified School District Board of Trustees voted to move forward with a refinancing plan for a bond measure passed by voters in 2001.
Jonathan Edwards, of Government Financial Services, a financial planning and advisory group based in Sacramento, gave a PowerPoint presentation about refinancing Measure X bonds.
Measure X was passed by 79 percent of voters in November 2001. According to the presentation, the measure authorized the district to be issued $2.93 million of general obligation bonds, which are bonds issued to state or local governments that use legally available resources, such as tax revenues, to pay back the bondholders over 25 years.
The district used the bonds to build, furnish and equip a multi-purpose room at Kelseyville High School. To pay back the bonds, the district issued an annual tax to be levied on property taxes.
According to the presentation, the average annual tax levy has been $15.94 per $100,000 of assessed property value since 2001, with the rate fluctuating during the past decade.
Edwards said taxpayers are paying the loan back with an average interest rate of approximately 5 percent. Edwards said the district could refinance the loan with an interest rate of 3.9 percent, which would save taxpayers an estimated $156,000 over the lifetime of the project, or $9,750 annually. The projected present value of these savings is approximately $118,000, according to the presentation. Edwards said the district would not have to take out a new loan, so the loan would be paid back by July 2027.
Edwards said the proposed refinancing agreement posed no financial risk to the community or the board. He said if the board chooses not to pursue the refinancing any further because of a lack of estimated savings during the approval process, it would not affect the district or community financially.
Edwards asked the board to support moving forward with the approval process. He said if the board voted to approve moving forward with the refinancing process, the firm would begin working on documents and proposals to send out to potential lenders, investors and brokers.
The board voted unanimously to move forward with the refinancing process.
Edwards will return before the board at its Aug. 16 meeting with a final proposal.
Kevin N. Hume can be reached at kevin.n.hume@gmail.com or call directly 263-5636 ext. 14.
