School Board CAB Refinancing Options on Property Tax Bonds
Resident Comments Requested
Piedmont’s School Board is considering options to refinance outstanding Capital Appreciation Bonds (CABS). Public input on the CAB Refinancing Options is requested as the School Board continues its discussion.
Three options to consider:
1. Status Quo: Do not refinance at this time, but continue to monitor interest rates.
2. CAB to CAB: This would save Piedmont taxpayers $11.3M over the life of the bonds. Tax rates would stay the same until 2027, but then would decrease until 2043.
3. CAB to CIB (Current Interest Rate Bonds): This would save Piedmont taxpayers $19.5M over the life of the bonds. Tax rates would stay the same until 2024, would then decrease from 2024-2034, and then would sharply decrease from 2035-2043.
Read more about the CAB Refinancing Options here.
Board of Education Members
Sarah Pearson
President
spearson@piedmont.k12.ca.us
Amal Smith
Vice President
amalsmith@piedmont.k12.ca.us
Doug Ireland
direland@piedmont.k12.ca.us
Cory Smegal
csmegal@piedmont.k12.ca.us
Andrea Swenson
aswenson@piedmont.k12.ca.us
This is monumental and novel for the School Board; they are considering action that might lower taxpayer burden. Of course if this is accomplished, they will float another bond. Rest assured, Piedmont taxpayers will retain bond debt to the maximum allowed by law.
Refinance CAB to CIB. Rates have one direction going forward: up.