GRPS previews possible refunding of 2016 bonds that could save taxpayers about $5 million
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Summary
District finance staff and project managers told trustees certain 2016 bonds are callable next May; working with financial adviser PFM, the district is exploring a refunding that could yield roughly $5 million in taxpayer savings if interest rates remain favorable.
Miss Cribbs and project manager Mr. Smart briefed the board on capital-project cost updates and a potential refunding of callable 2016 bonds. Mr. Smart said the original approved bond amount was to retain a construction manager and that, after subcontractor bids arrived, the district adjusted the guaranteed maximum price and associated purchase orders.
Miss Cribbs told trustees that some 2016 bonds will be callable in May and that work with financial adviser PFM indicates refunding could save about $5,000,000 for taxpayers if market conditions hold. She said the district would likely seek board action in October or November if a refunding opportunity appears, with execution of the refunding likely in February or March. "It's kinda like refinancing your mortgage," Miss Cribbs said when summarizing the refunding concept.
Mr. Smart said the project is currently about $2,100,000 below budget and includes an owner contingency; unused contingency funds would return to the district for other projects.
No formal board action on refunding was taken during the work session; staff previewed timing and next steps so trustees would be aware of the opportunity and potential savings.
