The vast majority of California school bonds are paid off within a 25-year time frame and with a total bond repayment ratio of 2 to 1, meaning that for every dollar of bonds sold the community will repay a dollar in interest.
The new Scotts Valley Unified School District bonds are structured with a repayment period of only 15 total years and a total debt repayment ratio of 1.12 to 1 meaning that for every dollar sold, it was only .12 cents in interest! The District was able to take advantage of its very strong credit ratings and historically low interest rates to significantly reduce the community’s future debt liability.
The District and its Financing Team estimate that the new repayment structure will save the Scotts Valley community approximately $6 million in unnecessary interest costs, and most importantly, still allow the District to keep the Measure “A” tax rate below the maximum amount presented to voters.
“Maintaining a level of trust with the community is not something to be taken lightly,” said Tanya Krause, Superintendent. “The District told the voters we’d stay under a certain tax rate in 2014. I’m proud to report that we are far below what the District told voters that rate would be.”