Tamalpais Union High School District is pleased to report the successful completion of the refunding of its 2006 series of General Obligation Bonds. Refunding of bonds is similar to refinancing a mortgage. New bonds are sold, the old debt is paid off, and taxpayers benefit from the savings. Historically low interest rates and the ability to enter the market quickly enabled the district to lock in $8.5 million of debt service savings.
This refunding represents the third time the District has been able to reduce debt service costs paid by our taxpayers. The combined savings from each of our three refundings total about $19.9 million over the period from 2011 through 2031. The 2014 refunding was extremely successful and represents about 43% of the overall savings from the three refundings.
As recently reported to our community, Standard & Poor's affirmed the District's rating of 'AAA' on all outstanding General Obligation Bonds as well as on the new Refunding Bonds. Standard & Poor's cited the District's strong tax base, conservative approach to budgeting, strong reserve levels and strong management as key positive factors leading to the highest possible rating.
The 2006 bonds were originally approved by a two-thirds vote of the community in order to modernize and upgrade all five high schools. Our students and community now benefit from world class learning environments at all five high schools.