Franklin-McKinley School District Refinances Bonds, Saves Taxpayers Money Yet Again – this time over $9.3 million

SAN JOSE, CA -  San Jose, CA, - October 4, 2019. Franklin-McKinley School District has refinanced prior general obligation bonds of the District which were originally sold in 2013. The 2013 Bonds, approved by 70% of voters at an election held in November 2010, were sold to provide safe and modern schools with new technology, build and renovate science and computer classrooms, replace roofs, plumbing, heating and electrical equipment, and replace fire alarms and security systems. The 2019 refinancing allows the District to reduce payments by more than $9.3 million over the next twenty-five years.  

This follows prior refinancings in 2018, 2017, 2015, and 2014 that saved property owners an estimated $2.0 million, bringing the refunding total to over $11.3 million in combined property tax savings.  

Interest rates on the new 2019 bonds, which were locked in at a sale to investors on October 1st, range from 3.23% to 3.85%. These lower rates will be replacing the old interest rates from the 2013 bonds that ranged from 3.58% to 6.40%. This difference in interest rates between the two bonds will save property owners $9,308,856.

The 2019 Refunding Bonds were approved by the Franklin-McKinley Board of Trustees on September 10th. Superintendent Cruz said, “We know that our community supports our schools, and in turn we wanted to give back to our community by saving taxpayer dollars. With interest rates at historic lows, we had the opportunity to lower property tax payments by refinancing the 2013 Bonds.” Assistant Superintendent Jason Vann added, “Interest rates have dropped significantly this year and with the support of our Board and Superintendent, we took advantage of the low rates to save our taxpayers. Because of this refunding, property owners will see lower tax rates over the next two decades.”
Property owners in the District will see reduced tax rates beginning next year.

About Franklin-McKinley School District:  The Franklin-McKinley School District serves approximately 7,300 students ranging from Transitional Kindergarten to 8th grade at 16 schools in the city of San Jose, CA. For more information, please visit us online at www.fmsd.org .
                     Franklin-McKinley School District                    
645 Wool Creek Drive, San Jose, CA 95112