Menlo Park City School District refinances bonds, securing savings for local taxpayers
The Menlo Park City School District has secured savings of over $3.7 million for local taxpayers by refinancing bonds previously approved by voters. The School Board had voted at its August 29 meeting to approve the refinance, and the action was implemented on September 10, 2019.
The District took advantage of the current low interest rate environment and replaced bonds with an average interest rate of 4.50% with new bonds at an all-inclusive interest rate of 2.61% without extending the term of the original bond payments.
The District was able to lock in aggressive interest rates by securing the highest possible ‘AAA’ rating from Moody’s Investors Service. The rating is a result of the District’s conservative fiscal policies and practices, large tax base, strong resident socioeconomics, and healthy finances.
According to Keygent, the District’s financial advisor, the outcome is good for local taxpayers: “All of the savings from the refinancing will be passed back to District taxpayers in the form of lower property tax bills.”
Superintendent Erik Burmeister noted that the exemplary fiduciary responsibility that MPCSD staff pursues allows him to lead with confidence and focus on student-facing priorities. “Our primary mission is to serve our students, making sure they are all engaging, achieving, and thriving in the classroom and as developing young people. The fact that our staff and Board also do such an excellent job running the business of our district is just amazing.
“Every voter and taxpayer in MPCSD can be proud that our business office is looking out for their bottom line. They should also know that this smart management allows MPCSD to punch above its weight, consistently delivering the highest quality education at a much lower per student cost than any of our neighboring community-funded districts. I am so grateful and proud to lead this forward thinking and responsible district.”
In the past decade, the District has taken advantage of multiple refunding opportunities, which together with the most recent refunding have saved the taxpayers $28.9 million.