Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Finance topic
No spam. Unsubscribe anytime.
District budget staff outline defeasance plans for bond proceeds; $27.9 million borrowing noted
Summary
Finance staff told the board the district will use debt defeasance to meet spend-down requirements on prior borrowings and expects interest savings; actions will be brought to the March 17 meeting.
District finance staff reviewed resolutions that would authorize transfers of funds to complete debt defeasance for prior borrowings.
Officials said the district borrowed $27,900,000 in April 2023 for construction projects at Starbucks and Durst at Agri Home and now must spend a percentage of that borrowing by the end of the month to meet spend-down requirements. To meet the requirement, staff described a planned debt defeasance estimated at $2,000,000 that staff said would save an estimated $588,000 in future interest costs.
Staff also reminded the board of a prior levy-approved $3,000,000 payment to reduce aquatic center debt; completing that defeasance is expected to save about $191,000 in future interest expense. Staff said these items will be brought forward for board action on March 17. No formal board votes were taken in the work session.
