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Press Release: BSD saves over $3.0 million in Taxpayer Savings
Posted 10/16/19

Burlingame Elementary School District

1825 Trousdale Drive,

Burlingame, CA 94010

www.burlingameschools.org

 

PRESS RELEASE

 

FOR IMMEDIATE RELEASE

Contact: Dr. Maggie MacIsaac, Superintendent – (650) 259-3805

 

Burlingame Elementary School District saves over $3.0 million in Taxpayer Savings

Burlingame, CA - October 16, 2019 – Burlingame Elementary School District has priced its second and final series of bonds under the 2016 Measure M bond authorization and refinanced prior general obligation bonds of the District which were originally sold in 2010.  The District locked in interest rates on October 8th in one of the lowest interest rate markets for municipal bonds.  The true interest cost, an approximation of the average borrowing cost, was 2.42%. 

 

District voters approved Measure M, a $56 million bond authorization, with the support of 74.5% on November 8, 2016.  Measure M proceeds are used to update schools and provide access for students with disabilities, remove lead paint/ asbestos, fix leaky roofs, update classrooms, libraries, labs/ facilities to meet current earthquake, fire/ safety codes, replace old portable classrooms, upgrade science labs.  By taking advantage of favorable interest rate environments, the total amount of debt service associated with the Measure M bonds will be more than $14 million less than what was estimated at the time of the election. 

 

The District also priced refunding bonds, which will allow the District to take advantage of the favorable interest rate environment to reduce debt service payments on previous bonds.  Borrowing rates on the new 2019 Refunding Bonds average just under 2.60%.  These lower rates will be replacing the old interest rates from the prior bonds with an average coupon of 4.68%.  This difference in interest rates between the new and prior bonds will save property owners $3,008,399 over the next 15 years.

 

The 2019 bond issuances were approved by the Burlingame Elementary School District Board of Trustees on September 10th.  Superintendent MacIsaac said, “Our community is very supportive of our schools. We wanted to give back to our community by saving taxpayer dollars.”  Assistant Superintendent Gaby Hellier added, “Interest rates have dropped significantly this year and with the support of our Board and Superintendent, we took advantage of the opportunity to lock in low interest rates for our Measure M and refunding bonds.”