Advisor outlines refinancing options and possible 2026 bond scenarios

Adam Bowers, the district's municipal advisor, presented a financial update that included prospects for refunding callable bonds and options for a possible 2026 general-obligation (GO) bond measure.

Bowers showed the district's assessed-value trends and a callable-debt pool that could be refinanced to lower taxpayer rates; he estimated potential savings of about 6.51% on $35.3 million of callable debt. He said a refinancing that targets the most advantageous maturities could materially reduce the tax-rate burden for taxpayers without additional voter authorization.

On new-money options, Bowers presented multiple levy scenarios. Under one model with a $30-per-$100,000 tax rate the district could generate roughly $60 million; higher target rates of $40, $50 and $60 per $100,000 would increase proceeds up to roughly $122 million depending on rate assumptions and structure. He emphasized the advantage of providing local matching funds to qualify for state competitive capital programs.

Bowers recommended next steps such as obtaining a bond rating (he suggested a May rating and a spring sale cycle for refinancing) and explained schedule choices for a 2026 measure: earlier summer work to prepare an election or a November 2026 ballot to take advantage of higher turnout.

"Generally anytime you're over three it's worth looking at '2 and at 6.51% it's worth serious consideration," Bowers said describing potential savings from refunding. He also noted the difference between capital-appreciation bonds and traditional issues and described a two-step process to restructure some liabilities.

The board asked questions about timing and the district's capital needs. No decision to place a bond on a ballot was made at the meeting; staff will return with recommendations should the board choose to pursue refinancing or a 2026 measure.