District moves to save taxpayers millions through bond redemption

In a recent board meeting, trustees discussed a resolution aimed at amending and restating the prior authorization for the redemption of certain outstanding bonds. The proposed changes include increasing the 2024 defeasance amount from $9 million to $11 million and authorizing an additional $11 million for a 2025 defeasance.

The district's commitment to maintaining a stable interest and sinking tax rate was highlighted, particularly in light of the bond funds approved in 2014 and 2019. The board noted that annual debt obligations are structured based on projected tax collections, which can fluctuate according to certified values from the appraisal district.

As of August 2024, the district anticipates having an additional $2 million in surplus funds from the 2023-2024 debt service funds, which can only be used for repaying authorized bonds. This financial strategy is expected to save taxpayers approximately $2.1 million by allowing the district to pay off certain bonds early.

The resolution also includes provisions for the 2025 debt service budget, with anticipated collections of $45.5 million against current debt obligations of $34.7 million. The district's financial advisors have projected a net present value savings of $3.45 million over the next year, contingent on actual collections.

The administration recommended that the board approve the resolution, designating the superintendent and CFO as authorized officers to manage the specifics of the bond defeasance process. The board's decision is expected to have significant implications for the district's financial health and taxpayer savings in the coming years.