CUSD refinances debt from previous facilities bond

The Claremont Unified School District wants local property owners to know the district is being thoughtful with their money.

At the August 18 school board meeting, Superintendent of Business Services Lisa Shoemaker reported that CUSD was in the process of issuing “refunding bonds” to refinance the district’s outstanding general obligation bonds from Measure Y.

The refunding is cutting $2.3 million from what’s owed, bringing the district’s outstanding bonds to a little more than $21 million, more than half of the original borrowed amount. That figure is what remains of the $48,910, 000 in GO bonds issued after Claremont voters approved Measure Y in June of 2000.

Ms. Shoemaker said the district pursued the refunding because interest rates are so low—even lower than in 2010, when the district first refunded its outstanding bonds. The first refinancing carved $3.9 million off the amount, with the second bringing total savings from refunding to $6.2 million.

The savings will not shorten the remaining life of the bonds, Ms. Shoemaker said, noting that the last payment is due on the bonds’ maturity date of 2028. The savings will instead be spread among property owners in the community over the life of the bond.

 “It’s the fiscally responsible thing to do,” Ms. Shoemaker said. “Interest rates are historically low, so it makes sense to take advantage of that.”

—Sarah Torribio


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