RSF School District’s bond refinancing leads to taxpayer savings

by Rancho Santa Fe Review

Rancho Santa Fe residents will see lower property tax bills due to the Rancho Santa Fe School District’s bond refinancing efforts.

In October, the district refinanced $21.3 million in general obligation bonds, saving district property owners over $1.28 million in property taxes. According to a news release, the district took advantage of low interest rates due to the Federal Reserve’s seeming commitment to lower borrowing rates and due to the ongoing employment uncertainty. The recent decline in interest rates led to the refinancing of the district’s 2015 General Obligation Refunding Bonds, authorized by the school board in March.

“We were very patient with this refinancing which started in December 2024,” said RSF School District Superintendent Kim Pinkerton in the news release. “Many economic indicators pointed to lower rates from when we started the process in late 2024. Our patience paid off, and we are thrilled to save our taxpayers over $1.2 million.”

According to the release, in 2015 the district previously refinanced bonds from prior bond elections held in 1991, 2004 and 2008. The total savings from this prior refinancing was over $2.8 million, bringing the total amount saved over the last decade to $4 million plus.

The interest rates on the refinanced 2015 bonds ranged from 3.25% to 5.00%. The average interest rate on the new refunding bonds is 2.10%. The difference in interest rates will save property taxpayers $1,282,400 without extending the original term of the borrowing. The final payment of the new refunding bonds is the same as the original Aug. 1, 2032 final payment of the old 2015 bonds, the news release stated.

“We have a great school in Rancho Santa Fe, due in large part to our wonderful community and our school parents and guardians,” said RSF School District Board President Jee Manghani in the news release. “We are happy to give back to our community in any way we can, and I’m excited we are able to deliver taxpayer savings to our community.”