SOUTH LAKE TAHOE, Calif. — The Lake Tahoe Unified School District has taken advantage of low interest rates during the coronavirus pandemic and refinanced bonds that officials say will save millions.

The district in September refinanced $15.15 million in general obligation bonds from the election in 2008 which will save district property owners $3,335,698 in property taxes.

In 2008, District voters authorized the sale of bonds up to $64.50 million to replace outdated portables, electrical, emergency, and lighting systems; improve technology in the classrooms and libraries; and create new classrooms. 

Interest rates on the refunded 2008 election bonds were 4-5%. Rates on the new bonds range from 0.454% to 3.034%, a difference that will save property taxpayers more than $3.3 million (or, 13.4% in net present value savings on refunded bonds) without extending the original term of the borrowing, officials said.   

The refinancing of the bonds was authorized by the Board of Trustees on Aug. 11. 

“With interest rates near historic lows, we wanted to take this opportunity to save our community money, particularly in light of the downturn in the economy,” said Superintendent Todd Cutler.

“We know that our community supports our schools, and in turn we wanted to give back to our community by saving taxpayer dollars,” said Board President Larry Reilly. “While the education of our students is a core mission of the District, we are also mindful of our District responsibilities, and that includes looking out for the taxpayers.”

Property owners in the district will see a reduced property tax rate on future tax bills.