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Franklin-McKinley School District Saves Taxpayers More Than $3 Million Through Bond Refinancing

The Franklin-McKinley School District (FMSD) is pleased to announce a successful bond refinancing effort that will save local taxpayers more than $3 million over time.  This achievement reflects the District’s ongoing commitment to strong fiscal management and responsible stewardship of public funds.

 

What Is Bond Refinancing?

Bond refinancing, also known as refunding, allows the District to take advantage of lower interest rates by replacing existing bonds with new bonds at more favorable terms. Similar to refinancing a home mortgage, this process reduces overall repayment costs without extending the repayment period.
 
Voters authorized the District to issue a series of General Obligation Bonds (GO Bonds) totaling approximately $41 million between 2010 and 2017. The refinancing of these bonds resulted in net present value savings of 5.43%.  The industry standard for savings from a bond refinance is generally 3%.   This is in addition to the $16.2 million the District has previously saved taxpayers from multiple refinancings going back to 2008.   The total savings to taxpayers from the refinancing are $3.23 million.  
 
 

Benefits to the Community

Through this refinancing:
  • Taxpayer savings exceed $3 million over the life of the bonds
  • No increase to current tax rates
  • Continued funding for voter-approved school facility improvements

These savings help ensure that more dollars stay within the community while still supporting critical school facility needs.

Commitment to Fiscal Responsibility

FMSD carefully monitors financial markets and works with professional advisors to identify opportunities that benefit taxpayers. This refinancing effort is part of the District’s broader strategy to manage debt efficiently while maintaining high-quality learning environments for students.
 
 

Investing in Our Schools

Bond funds continue to support important improvements, such as:
  • Upgrading classrooms and learning spaces
  • Enhancing safety and security systems
  • Modernizing infrastructure across school sites

By reducing financing costs, the District can maximize the impact of every dollar invested in our schools.

 

Learn More

For additional information about FMSD bond programs and financial initiatives, please contact the Business Services Department at (408) 283-6020.