Board Approves Early Debt Repayment Saving Taxpayers Billions

The Stafford Joint City Council and SMSD Board of Trustees meeting on August 25, 2025, focused on the financial strategy of early debt repayment, which aims to save taxpayers significant amounts of money. Clarence Greer from RBC Capital Markets presented the concept of cash defeasance, likening it to making extra mortgage payments to reduce the term of a loan. This approach has been implemented consistently over the past six to seven years, demonstrating effective stewardship of taxpayer dollars.

Greer emphasized that this strategy not only benefits the community financially but also positively impacts the district's credit rating. He commended the leadership of Dr. Bostic and his staff for their commitment to managing the district's finances responsibly. The board members acknowledged the importance of this initiative, with a unanimous vote to adopt a joint resolution supporting the continued early repayment of outstanding bonds.

The meeting concluded with expressions of gratitude for the collaborative efforts in maintaining fiscal responsibility, highlighting the ongoing commitment to reducing debt and enhancing financial stability for Stafford residents.