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Resolutions passed, may save $350,000 for E.C. schools

October 10, 2001|By KELLY GRANT, Staff Writer

The El Centro Elementary School District Board of Trustees passed two resolutions Tuesday that may save district taxpayers and the district itself as much as $350,000 by refinancing two series of bonds and a lease agreement.

The first resolution calls for a refinancing to two series of bonds authorized for sale by the county Board of Supervisors in 1993 and 1994. The bonds, for $3 million and $3.6 million, were for building Sunflower Elementary and new building construction at Kennedy Middle School.

Arnold Preciado, assistant superintendent of business services for the district, explained that refinancing now under favorable market conditions will decrease the amount paid back by the taxpayers because of lower interest rates.

"Not too often does a school district refinance general obligation bonds," Preciado said.

"The district is always looking for ways to generate or save revenue. In this case, it will reduce property taxes," Preciado said.


"It's our responsibility to be frugal. These are the people who voted for the bonds," Preciado said.

The refinancing could save taxpayers almost $250,000, Preciado said.

The second resolution calls for the refinancing of a certificate of participation, a lease agreement to finance capital improvements to the district.

Conservative estimates put the district's savings from this refinancing at $93,000, though it could be as much as $100,000, Preciado said.

The district will likely save this money for future capital improvements, Preciado said.

The district, its financial planner and Board of Trustees have been watching closely the financial markets and think this is a "very good time to refinance," Preciado said.

"The staff has done a great job in watching out for an opportune time to do this," board President Ron Hull said.

Staff Writer Kelly Grant can be reached at 337-3441.

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