Menlo Park school district refinances facility bonds Menlo Park school district refinances facility bonds (December 14, 2005)

** Savings to taxpayers will total $1 million over 22 years, school officials say.

By Marjorie Mader

Almanac Staff Writer

Taking advantage of decreased interest rates in the municipal tax-exempt bond market, trustees of the Menlo Park City School District have refinanced a 1998 series of facilities bonds and will pass the savings -- an estimated $400,000 -- to taxpayers.

Combined with a similar refinancing in March 2004, the total savings for taxpayers is expected to amount to $1 million over 22 years, said Superintendent Ken Ranella.

The recent refinancing of a $16 million bond series was completed in November, said financial consultant Charlie Feinstein of Kelling, Northcross & Nobriga in Oakland.

In 2004, the trustees refinanced a 1996 series of the $22 million in bonds, authorized by voters in 1995 to renovate and construct new facilities at the district's four schools: Laurel, Encinal Oak Knoll and Hillview Middle.

The concept is the same as home mortgage refinancing, with new bonds at lower interest rates used to pay off old bonds at higher rates, said Mr. Feinstein.

Instead of retaining the savings for the district, trustees decided to pass them on to taxpayers.

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