District spokespeople announced Tuesday, “the Santa Monica Malibu Unified School District (SMMUSD) [saved] local taxpayers over $4.2 million” by refinancing Measure BB bonds approved by voters in 2008, according to a press release from the SMMUSD.
Due to a historically low interest rate environment, the district replaced bonds with an average interest rate of approximately 4.73 percent with new bonds at an all-inclusive interest rate of 3.5 percent. Savings from the refinancing will result in lower property tax bills for district taxpayers.
The district secured strong investor demand by receiving ratings of “Aa1” and “AA” from Moody’s Investors Service and Standard & Poor’s Ratings Services, respectively.
Measure BB is a $268 million bond that was used for security upgrades, repairs and renovations to all schools in the district. It also provided for some computer and technology upgrades.
“Our community has supported us time and time again,” Chief Financial Officer Jan Maez said in the release. “We owe it to our taxpayers to lower the burden whenever possible.”