Shouldn’t every district being doing this? From the

Property owners in the Old Creek Ranch area of San Marcos will save more than $2 million in special taxes under a bond refinancing that the city completed last week.

Located in the southwest part of the city, at Melrose Drive and Rancho Santa Fe Road, the area is part of a Mello-Roos district that levies special taxes to help pay for roads, traffic signals, and water and sewer facilities.

The refinancing will shave $2.1 million from about $19.1 million in outstanding bonds for those services by cutting interest rates from 5.88 percent to 4.60 percent.

That translates to a 10 percent reduction in taxes, which range on average from $1,070 per year for apartments to $2,420 annually for single-family homes, and $9,388 per acre for nonresidential properties. Under the new bond terms, property owners will save between $107 and $939 per year.

This is the second time this year that the city has taken advantage of historically-low interest rates to refinance bonds in its Mello-Roos districts.

The city took a similar action in January to cut property taxes in the Santa Fe Hills neighborhood of San Marcos by $52 to $141 per year.

Roque Chiriboga, manager of financial analysis and debt administration for the city, said earlier this year that city finance staffers continually monitor the bond market for savings opportunities, and have refinanced special tax bonds about six times in the past 20 years.

The council approved the change for Old Creek Ranch in May, and city staffers completed the refinancing earlier this month.

“At some point, there’s a tipping point where there’s a cost benefit to do the refinance,” city spokeswoman Jenny Peterson said. “When everything aligns and it’s the right move to make, then that’s when we take it to the Council.”

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Jim the Realtor
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