"I've been talking with our bank, Pinnacle," said the presenter identified as Mr. Smith, describing a preliminary term sheet to refinance the district's 2016 bond. The bank proposed a blended interest rate around 4.6 percent; staff said the refinance would be structured as a bank loan that purchases the outstanding bonds.

Smith cautioned the term sheet was preliminary and noted tradeoffs: a required 30‑day notice to lenders will produce some accrued interest (roughly $120,000 estimated), and there are closing and legal costs associated with refinancing. He told the board that although there would be short‑term interest carry costs, proceeds would sit in escrow and earn interest, and even after accrual and closing fees staff expect net savings in the range of $900,000 to $1.1 million over a seven‑year period.

The presenter also compared closing costs with the original 2016 issue: closing costs on the original issue were presented as approximately $538,000, while the refinance closing costs are projected at about $80,000–$85,000. Board members asked about amortization and were told the refinance term would be nine years.

Staff said they will finalize the term sheet and return with documentation; the board agreed to consider bringing a finalized refinance plan back to the Jan. 15 meeting for further action.