SSFUSD Saves Homeowners $7.2 Million Through Bond Refinancing
South San Francisco Unified School District (SSFUSD) recently refinanced some of the District’s outstanding 2010 Measure J bonds, which will generate over $7.2 million in District taxpayer savings over time.
The District was able to replace its outstanding bonds with a lower interest rate and accelerate the repayment of bonds, which reduces the average life of the outstanding bonds by 1.9 years. The reduction in rates and the faster repayment of bonds contributed to the taxpayer savings. This is similar in purpose to refinancing a home mortgage by paying off existing debt with funds borrowed at a lower interest rate and reducing the length of the debt.
Measure "J" was authorized by more than 55% of South San Francisco Unified School District voters in 2010 to fund various school facility improvements and modernization efforts. The bonds, a form of municipal government loan, were to be repaid over time from property taxes. The District has previously issued refunding bonds in 2022. In 2022, the District was able to generate over $3.6 million in District taxpayer savings over time. In aggregate, the District will be able to reduce bond debt service payments by over $10.8 million between the two refunding bond issuances.
“We do our best to be good stewards of our community’s resources,” said the District’s Superintendent, Dr. Shawnterra Moore. “We were able to take advance of a unique opportunity to save money for our families and business community; this was something we could not pass on.”
Just prior to the bond refunding, the District received an upgrade of its credit rating to ‘Aaa’ from Moody’s Investor Service, which is the highest rating provide based on the District’s strong commitment to responsible fiscal management.
“We are grateful to the SSFUSD finance team for taking the initiative to refinance the Measure J bond and return $7.2 million in savings to taxpayers,” said Amanda Anthony, president of the SSFUSD Board of Trustees.” “In these inflationary times, I am proud to see how SSFUSD stands by its commitment to strong fiscal stewardship and oversight. This is a way to thank our neighbors for making this work possible.”
The 2025 General Obligation Refunding Bonds are scheduled to close in early June, to comply with tax law requirements. With this financing, property owners in the district will see savings via reduced tax rate on future tax bills.