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District 49 staff and financial advisor present preliminary finances and a potential COP refunding that could save about $2M PV
Summary
Finance staff reviewed preliminary unaudited fourth-quarter results showing a $6.8M general-fund deficit driven by transfers and audit costs; RBC Capital Markets presented a potential refinance of 2015 COPs with estimated annual savings of $128k–$170k and near $2M present-value savings and asked to begin the refunding process.
District 49 finance staff presented preliminary, unaudited fourth-quarter financial results and explained year-over-year changes in revenue and expenses during the Oct. 9 meeting. Administration characterized overall 2024–25 results as a roughly $6.8 million deficit in the general fund, citing increased transfers to subsidize other funds, higher salaries and benefits (approximately $15.1 million year over year) and approximately $3 million tied to a Colorado Department of Education audit expense.
At the same item, Todd Snido of RBC Capital Markets explained an opportunity to refund the district—s Series 2015 Certificates of Participation (COPs) at their 10-year call date (Dec. 15). He said issuing a refunding series now could reduce outstanding principal (issue size estimated at about $47 million to pay off ~$50.5 million outstanding) and produce annual savings in the $128,000–$170,000 range and nearly $2 million in present-value savings (about 4% PV savings, above the GFOA 3% guideline).
Board members asked technical questions about maturity dates, whether the new issue would extend maturities (it would not, per presenter) and the net reduction in principal. Finance staff said the presentation would be moved forward to action at a subsequent meeting, with a formal resolution anticipated in the near term.
What happens next: staff will bring a formal refunding resolution to a future meeting and continue budget work to address the general-fund deficit; the board signaled interest in pursuing a refunding if market conditions and final analysis support the expected savings.
