The Davis school board took advantage of lower long-term interest rates and voted Friday evening to refinance some of the school district’s general obligation bonds, which will result in a small savings for local homeowners on their property tax bill.

The bonds that will be refinanced were approved by voters in May 2000, to pay for the local portion of funding for construction of Montgomery Elementary, Korematsu Elementary, Harper Junior High and the instructional performing arts building at Davis High.

The sale of the school district’s Series 2002 bonds, generating $13 million, was part of this process. The bonds were set to mature through 2027.

On June 30, the school district was advised by Government Financial Strategies, a firm that has worked with the school district on bonds over the years, of an opportunity to refinance the remaining $9.87 million in outstanding principal. The district was paying an average of 4.8 percent interest and can refinance to 3.7 percent.

“Based on current market conditions, we project that district taxpayers could save approximately $750,000 (between now and 2027) by refinancing the Series 2002 bonds, net of all costs,” according to a memo from the firm.

When the savings is spread over the thousands of homes in the Davis school district, the reduction works out to 58 cents per year per $100,000 of assessed value. For a home with an assessed value of $400,000, the annual savings would be about $2.32.

“Just like many homeowners, we are refinancing,” said trustee Sheila Allen. “We like to save the taxpayers money.”

During Friday night’s brief special meeting, the trustees also voted to approve layoff notices for two positions at the Valley Oak campus: a paraeducator position at the Children’s Center (0.7813 percent of full-time) and a secretarial position (0.6875 percent of full-time).

Assistant Superintendent Matt Best said one secretary will serve the Children’s Center and a state-funded preschool program, both on the Valley Oak campus, rather than have a separate part-time secretary for each program. The paraeducator position is being trimmed because the Children’s Center is reorganizing to operate in two classrooms rather than three.

The board also approved the hiring of several teachers, mostly at the junior high and high school levels, replacing other teachers who have gone on leave or moved on to other jobs.

The school board’s next meeting is scheduled for Aug. 4.

— Reach Jeff Hudson at [email protected] or (530) 747-8055.

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