Citing favorable market conditions, the refinancing of $12.26 million in special tax revenue bonds was approved Thursday night by members of the Murrieta Valley Unified School District governing board.
The district will benefit by $1 million as a result.
“Think of it as refinancing a mortgage to get a better interest rate,” said Bill Olien, assistant superintendent of facilities for the Murrieta Valley Unified School District. “This is to get lower interest costs to the district.”
Community facility districts benefit from special mello-roos taxes approved by voters or developers. Beginning in 1990, the Murrieta Valley Unified School District began forming CFDs. There are now 26 located within the district’s service area. The district issues bonds that are repaid with the revenue from the special taxes. The bond proceeds are used for school improvements to campuses that serve the residents of the respective CFDs.
The last time the district took a similar refinancing action was in 2006. The revenue was used to construct a new multipurpose room at Alta Murrieta Elementary.
The CFD bonds being refinanced this time around are for areas that feed into Dorothy McElhinney Middle School, Lisa J. Mails Elementary and Vista Murrieta High School. These CFD areas were approved in 2002, 2003 and 2004.
There are no immediate plans for projects at the three campuses; rather the district will to set the funds aside for deferred maintenance.
“With the shortfall in deferred maintenance money coming from the state, this money will be used for large projects such as replacing air conditioning units, roofs and other major facility repairs,” Olien said.
Tuesday’s action was approved unanimously by the board in its capacity as the public financing authority for the CFDs.