PACIFIC GROVE, Calif. (8/24/2016)– The Pacific Grove Unified School District (PGUSD) today closed the sale of refunding bonds that will save local taxpayers over $3 million. Dale Scott & Company (DS&C) served as the financial advisor to help the district refund the bonds and take advantage of lower interest rates without lengthening the pay-back period.
“None of our work to prepare students for lifelong success would be possible without the active, ongoing support of our community,” said John Thibeau, President of the PGUSD Board of Trustees. “We will continue to prudently manage the investment of local taxpayers in the future of our students.”
PGUSD refunded $16.1 million of current interest bonds, resulting in a total savings of $3.1 million. The refunding comprised general obligation bonds approved by voters in 2007 (Series A), 2008 (Series B) and 2009 (Series C).
“One of our top priorities has been to maintain financial accountability and budget integrity,” said Dr. Ralph Porras, PGUSD Superintendent. “The Board of Trustees’ decision to refund these bonds does just that by returning savings to our local taxpayers while keeping us on track to provide all of our students with a positive, safe and stimulating learning environment.”
The interest rate of the new bonds is significantly lower than the old bonds, down to 2.8 percent from an average of 4.2 percent.
“PGUSD’s refunding will benefit the District and local taxpayers alike,” said Dale Scott, president of DS&C. “The District wisely waited until market conditions improved before making this move, and the community will reap the benefits.”