By Steve Breazeale
In an attempt to take advantage of historically low interest rates, the Capistrano Unified School District Board of Trustees voted on October 24 to unanimously approve the refinancing of the district’s 2002 Certificates of Participation in order to save the district roughly $190,000 per year.
In a presentation given to the board, Deputy Superintendent of Business Services Clark Hampton noted that the district’s Certificates of Participation, which is similar to a mortgage and a common tool used by government entities, was issued back in April of 2002 and totaled $31.9 million. That money was used to help build several structures throughout the district, including district headquarters in San Juan Capistrano.
With roughly $22.8 million of the certificate’s debt being callable, and with interest rates hovering at 3.68 percent as of October 18, the board was urged by staff to approve of the refinance.
“(Interest rates) are almost at the lowest point they’ve been since this debt was issued…we want to grab that opportunity,” Lori Raineri of Government Financial Strategies, an independent public financer hired by the district, said.
The board will consider refinancing General Obligation, or G.O, bonds in a November meeting.