Castro Valley Unified School District Saves Taxpayers
More Than $2.2 million with Bond Refinancing
Castro Valley, CA – (November 5, 2024) – On Thursday, October 24th, the Castro Valley Unified School District issued $21.47 million of general obligation refunding bonds. Through the refinancing, property owners within the District will save more than $2.2 million over the remaining life of the bonds through reduced property taxes. The refunding was done without extending the term of the bonds.
Refunding bonds, which are similar in purpose to refinancing a home mortgage, pay off existing debt with funds borrowed at a lower interest cost. The 2024 refunding bonds were sold via a negotiated sale at a true interest cost (borrowing cost to district taxpayers) of 2.88%, considerably lower than the 4.42% average borrowing cost of the refunded bonds. The financing is scheduled to close on Tuesday, November 5, 2024.
The result of this successful refunding reflects the Board of Education’s commitment to effectively manage its bond program and demonstrate strong fiscal stewardship of public funds. In total, the District has refinanced its outstanding bonds on six separate occasions going back to 2006, saving taxpayers more than $18 million dollars.
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