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Supervisors approve BUSD bond refinancing

The Bonsall Unified School District and its property owners are expected to save $136,000 in interest payments as the result of the refinancing of general obligation bonds approved in 2005 by the voters of what was then the Bonsall Union School District.

A 5-0 San Diego County Board of Supervisors vote March 13 approved the refinancing of the $2,250,000 outstanding amount from bonds issued in 2007. The school district will be responsible for the process of selling the refunding bonds, but because the bond debt is financed by a property tax assessment County of San Diego approval was needed to authorize the county's Treasurer-Tax Collector to execute the agreement to forward the money to the school district and to direct the county's auditor and controller to maintain the taxes on the tax roll for the school district territory.

In November 2005, the Bonsall Union School District voters approved the issuance of $17 million of general obligation bonds for the repair and rehabilitation of Bonsall's public schools and the construction and acquisition of classrooms and other facilities. The bond debt was transferred from the Bonsall Union School District to the Bonsall Unified School District when the district transitioned from a K-8 elementary school district to a K-12 unified district in 2014.

The bonds were sold in 2006 and 2007 and the remaining principal and interest payments are being generated by a property tax assessment on Bonsall landowners. On Feb. 8, the BUSD board voted 4-0, with one vacancy, to approve the issuance of the refunding bonds. The bonds will be sold by private placement, which is a competitive process often providing flexibility on the timing and structure of the bonds and thus potentially more cost-effective than selling the bonds through a public offering. The refunding bonds will mature no later than the bonds which are being refinanced.

Author Bio

Joe Naiman, Writer

Joe Naiman has been writing for the Village News since 2001

 

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