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Kyrene board adopts authorizing resolutions to issue about $43 million in bonds and refunding bonds
Summary
On Feb. 25 the Kyrene Governing Board unanimously adopted resolutions authorizing the sale of approximately $43 million in school improvement bonds and a refunding (refinancing) of existing debt; the refunding is projected to produce roughly $2.2 million in taxpayer savings, the district said.
The Kyrene Governing Board on Feb. 25 adopted authorizing resolutions to issue roughly $43 million in school-improvement bonds and to pursue a refunding (refinancing) of existing district debt. The board voted 5–0 to adopt the resolutions after a presentation from Associate Superintendent and Chief Financial Officer Chris Herman.
Herman told the board the $43 million figure is approximate and that the final sale amount will depend on market interest rates at the time of sale. He described the refunding as comparable to refinancing a home mortgage: the district does not receive proceeds from the refunding; instead the transaction is designed to lower the district—s borrowing costs for the benefit of taxpayers. Herman estimated the refinancing would reduce costs to taxpayers by about $2.2 million.
Why this matters: Issuing bonds funds district capital projects; refunding existing debt can reduce long-term interest costs and taxpayer burden. The decisions set the district up to sell bonds when market conditions are appropriate and to pursue potential savings through refunding.
What the board voted: Vice President Katrina Nelson moved to adopt both authorizing resolutions; Member Amy Satri seconded the motion. The motion carried 5–0.
Details from the record: Herman said there are two separate resolutions in the board packet: one authorizing the issuance and sale of school improvement bonds and a second authorizing the issuance and sale of refunding bonds. He described the refunding volume as “around 40 to $43,000,000” and indicated the exact amounts will be determined at sale time.
Ending: With the resolutions adopted, administration and finance staff will proceed to time a sale and refunding consistent with market conditions and board policy; no sale date was set at the Feb. 25 meeting.
