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Yuma County approves resolution to position library district for possible $735,000 refunding savings
Summary
The Board of Supervisors approved a resolution that authorizes staff to prepare a potential refunding of 2005 library bonds if market conditions meet a minimum 3% net present value savings threshold; board members voted unanimously to adopt the resolution but did not commit to issuing bonds.
YUMA — The Yuma County Board of Supervisors voted unanimously to adopt a resolution allowing county staff to pursue a possible refinancing of the Yuma County Library District general obligation bonds if market conditions produce sufficient savings.
The resolution, described by Humberto Castillo, the county’s chief financial officer, would “tee up” a refunding of callable bonds while requiring a minimum net present value savings threshold before the county issues any debt. Castillo told the board the plan would only move forward if the refinancing achieved at least 3 percent net present value savings, which at the time of the presentation equated to roughly $735,000.
Mark Reeder, managing director at Stifel, presented financing scenarios and said a refinancing would not extend the bonds’ amortization and that the county could use savings to reduce the tax levy or provide other budget relief. “If we do the bond issue because it’s market sensitive, it will result in a net present value cash flow and hopefully tax rate savings for you,” Reeder said during the presentation.
The board’s action was procedural: the resolution authorizes staff to move forward with preparations and sets an efficiency threshold. The board did not authorize issuance of bonds at the meeting; supervisors’ approval establishes conditions under which staff and the county’s financial advisors may execute a refunding if markets deliver the targeted savings.
Castillo framed the measure as a precaution to capture potential savings. He told the board the original voter-authorized debt had been issued in phases in 2006 and 2007 and previously refinanced in 2015 and 2016. Reeder’s analysis showed that if rates moved in the county’s favor, the county could reduce the library district’s bond levy by about four cents in the next fiscal year without extending the debt schedule.
Board members asked staff to coordinate with library leadership and county management on how any savings would be applied to the levy and to keep the board informed before any issuance. A motion to adopt the resolution passed unanimously.
The resolution’s adoption establishes only the county’s authority to pursue a refunding under the stated efficiency threshold; any actual bond sale will require subsequent final approvals and execution steps by staff and counsel.
