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Board authorizes bond refunding process for 2015 and 2016(b) issues, cites about $280,000 in projected interest savings
Summary
The board approved a resolution to pursue refunding of 2015 and 2016(b) bonds; district staff said a competitive sale could occur in April with board action in May and that refunding could save roughly $280,000 in interest over the next decade.
At the March 9 meeting the board approved a bond-authorizing resolution that allows the district to pursue refunding (refinancing) of its outstanding 2015 and 2016(b) refunding bonds. Chair asked for a motion; the item was moved and supported and the board voted in favor.
Presenter Miss Hodge explained the mechanics: "It's like refinancing your mortgage on your house," she said, describing a new bond issue used to pay off the old one at a lower interest rate. Hodge told the board the district's financial adviser had identified market conditions favorable for refunding and estimated "about $280,000 savings in interest over the next 10 years." She emphasized that authorizing the resolution starts document preparation for a competitive sale but does not obligate the district to issue bonds if market conditions change.
Board members framed the refunding as an opportunity to reduce taxpayer cost. Under the plan described in the meeting, staff would move forward with paperwork and, if the market remained favorable, seek bids in April and present results to the board for formal action in May.
The motion to authorize the refunding process carried. The resolution authorizes staff to continue preparations for a possible April sale and to return with final recommendations and bond documents for board consideration.
