VICTORVILLE — The Victor Valley Union High School District has saved taxpayers $6.6 million over the next 19 years by refinancing a portion of its general obligation bond debt.
VVUHSD had been paying 5 percent interest on a general obligation bond offering that was approved by voters in 2008 (the funds were used for construction projects including Adelanto High School and the Silverado High School sports complex). VVUHSD finance officials have lowered the overall interest rate to 2.96 percent by strategically timing the bond issuance and doing extensive work to improve the district’s credit rating.
Moody’s Rating Services has bestowed an “A1” rating upon VVUHSD, thanks to a credit presentation prepared by VVUHSD staff along with financial adviser Dolinka Group and underwriting firm Stifel Nicolaus.
“Getting into the A1 bracket is significant,” VVUHSD Assistant Superintendent of Business Services Brian Hawkins said. “Financial institutions will invest in an A-rated bond.”
The Moody’s report states that the upgraded credit rating is due to the improving economy in the Victor Valley area as well as the sound management practices of the district.
“The district is committed to doing everything possible to meet the needs of our students and community while also being responsible with taxpayer dollars,” Hawkins said.
The refinancing of the bond debt is similar to refinancing a home mortgage — however, it does not extend the duration of the loan. The property tax savings will be realized by the community from 2017 through 2034.