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District staff recommend refunding of 2016 bonds; savings to taxpayers not yet quantified
Summary
Brenda DeMott told trustees the district is pursuing a refunding of bonds originally issued in 2007 and previously refunded in 2016; she said refunds could save taxpayers but exact savings will be known only after the bonds are sold.
Brenda DeMott, presenting Oct. 13, recommended the district seek a refunding of bonds that were issued in 2007 and previously refunded in February 2016. She described the refunding as similar to refinancing a home loan and said the proposed issue will be called the "2026 refunding bonds." "So they were refunded in 02/2016 ... now the 10 years up, and they've let us know that the interest rate again is in our favor," DeMott told the board.
DeMott said she did not yet have firm figures on the amount of savings but said the refunding will not cost the district and is expected to save taxpayers when the bonds are sold. When a board member asked how long the original 2007 bonds run, DeMott replied "30 to 40 years." DeMott said final savings estimates will be available after the district completes the refunding process and sells the bonds.
Why this matters: Bond refundings can reduce the district's interest expenses and lower taxpayer costs if market conditions are favorable. The board did not take a vote on the recommendation during the Oct. 13 session; staff said more precise numbers will be provided after the sale process begins.
