February 19, 2013 > Fremont Unified saves taxpayers additional $11.1 million
Fremont Unified saves taxpayers additional $11.1 million
Submitted By Raul Parungao, Asst. Superintendent, Business
The Fremont Unified School District is pleased to announce the savings of over $11.1 million to Fremont taxpayers through the refunding of the DistrictÕs Election of 2002, Series B (Ò2002B BondsÓ) and 2004 General Obligation Refunding Bonds (Ò2004 BondsÓ). When totaled with the savings from previous refundings of the District, this additional $11.1 million gives Fremont taxpayers a total savings and benefit of over $38.1 million.
ÒRefundingÓ (or refinancing) bonds is similar to refinancing a home mortgage. Homeowners refinance their home mortgages for lower interest rates, ultimately saving money by reducing their monthly mortgage payments and/or shortening the years of mortgage debt. Similarly, refunding the DistrictÕs 2002B Bonds and 2004 Bonds will reduce the overall cost to the community and taxpayers through lower interest rates, without extending the terms of the original bonds.
Bond refundings generate savings that go right back to taxpayers in the form of decreased property tax bills. The process and associated work typically requires 2-3 months for District officials. The District Administration completed the work for the transaction and our local Fremont taxpayers will receive the savings. 100 percent of the savings will go back to taxpayers and not one penny to the District.
ÒWe are excited to provide our taxpayers with over $11.1 million in additional property tax bill savings. We are committed to using every tax dollar wisely to maintain high performing schools. Taking advantage of this bond refunding opportunity is just one example of our DistrictÕs commitment to this,Ó stated Larry Sweeney, Board of Education President. The District was represented in the refunding by Tony Hsieh of Keygent, LLC. Mr. Hsieh advises California school districts on financing issues.
During the financing process, the District also received updated credit ratings from both MoodyÕs Investor Service and Standard & PoorÕs. The DistrictÕs updated credit ratings of Aa2/AA- are stellar and allowed the District to garner significant investor interest and, therefore, very low interest rates.
A detailed public report will be presented on January 23 at the regularly scheduled Board of Education meeting. For more information, contact Raul Parungao, the Assistant Superintendent of Business Services at (510) 659-2572.
Fremont Unified School District is comprised of 42 schools including 28 elementary, 5 junior high, 6 high schools, preschool, an adult school, and the Mission Valley ROP. We serve over 33,000 students and have 3,000 classified and certificated staff. For more information visit