District to Restructure 2002 Bond Issuance

Rich Calabru, a managing director at Piper Jaffray, spoke to the South Pasadena Board of Education Tuesday evening about the District’s options regarding the restructuring of bonds issued in 2002. Photo by Joseph Ruiz

The South Pasadena Board of Education Tuesday evening voted 5-0 to approve the refinancing of up to $10,500,000 of general obligation refunding bonds outstanding from a 2002 District election which issued and sold general obligation bonds authorized up to $29,000,000. According to the District, the refinancing is intended to generate debt service savings with benefits from the refinancing to be delivered entirely to the property owners in the District. District rationale also states that “the final maturity of the Refunding Bonds will not be later that the final maturity date of the Refunded Bonds.”

At Wednesday afternoon’s PTA General Association Meeting, School Board Member Julie Giulioni likened the maneuver to the refinancing of home loans in that the District is taking advantage of a lower interest rate.

“We have been able to save about $2 million that will go straight to taxpayers,” she said Wednesday. Giulioni also said that residents with median-priced homes should expect to save an average savings of $12 a year.

This decision comes a month and a half before the Citywide vote on renewing the Measure S Parcel Tax.