The local community college district is refinancing, ensuring those who own property within the district will pay lower rates on one of the district's bonds.
On May 3, the Foothill-De Anza Community College District's board of trustees finalized a the refunding -- or restructuring -- of the Measure E bond, which will reduce the tax burden of property owners living within the district, according to Becky Bartindale, a college district spokeswoman.
The board originally authorized the restructuring of two bonds -- Measure E and Measure C -- but after all was said and done, only Measure E was refunded.
The process of bond refunding is similar to that of refinancing a home. And with interest rates for tax exempt bonds (such as Measure E) at or near all-time lows, Bartindale said the time was right for the district to act.
"While these savings do not come to the district, they will benefit property owners who support Foothill-De Anza's bond program," board President Joan Barram said in a March 7 district press release. "We are delighted to have this opportunity to return money to our local taxpayers."
The $248 million Measure E was approved in 1999 and the $490.8 million Measure C was passed in 2006.
A second Measure E -- which was a parcel tax, not a general obligation bond -- and which asked for $7 million over six years on the November 2010 ballot, fell short of the votes needed to pass.
Though the savings per parcel is small -- 69 cents for every $100,000 of assessed property value -- it is estimated that the total combined savings of every property owner in the district should amount to about $13.1 million over the next 18 years.