Lake Tahoe Unified School District saves taxpayers $3.3M by refinancing bonds

SOUTH LAKE TAHOE, Calif. - The Lake Tahoe Unified School District (LTUSD) was able to refinance $15.15 million in general obligation bonds in September, saving property owners in the district $3,335,698 in property taxes.

With low interest rates brought about by the pandemic and economic uncertainty, LTUSD refinanced two series of their Election of 2008 General Obligation Bonds.

“With interest rates near historic lows, we wanted to take this opportunity to save our community money, particularly in light of the downturn in the economy,” said LTUSD Superintendent Dr. Todd Cutler.

In 2008, District voters authorized the sale of up to $64.50 million of general obligation bonds to replace outdated portables, electrical, emergency, and lighting systems; improve technology in the classrooms and libraries; and create new classrooms.

Interest rates on the old bonds was 4.0 percent to 5.0 percent and they now range from 0.454 percent to 3.034 percent, a difference that will save property taxpayers more than $3.3 million (or, 13.4% in net present value savings on refunded bonds) without extending the original term of the borrowing.

The refinancing of the bonds was authorized by the LTUSD Trustees during their August 11 meeting.

“We know that our community supports our schools, and in turn we wanted to give back to our community by saving taxpayer dollars,” said Board President Larry Reilly. “While the education of our students is a core mission of the District, we are also mindful of our District responsibilities, and that includes looking out for the taxpayers.”

Property owners in the District will see the reduced property tax rate on future tax bills.