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Board authorizes staff to pursue GO bond refunding that could save taxpayers an estimated $4.5 million NPV
Summary
After a presentation from Hilltop Advisors, trustees approved a resolution authorizing staff to proceed toward pricing a general‑obligation bond refunding that Adam Bauer said could yield about $4.5 million in net present value savings (approximately 4.67% NPV percent) if market conditions hold.
Trustees authorized the district to move forward with steps to refinance a portion of its general obligation debt after a financial presentation outlined potential taxpayer savings.
Adam Bauer, president and CEO of Hilltop Public Finance (the district’s municipal advisor), told trustees the district’s credit rating had improved to Aa2 and cited an assessed valuation near $54.7 billion as a strength in markets. The refunding would target callable 2016A and 2016B bonds; Bauer projected net present value savings of about $4.5 million (about 4.67% of the refunded par) depending on pricing and market movement, and he recommended the district authorize pricing as early as April 22 with a closing around May 6 if conditions remain favorable.
Assistant Superintendent Melissa Elwood and bond counsel walked trustees through the resolution (item 15AE) that would allow staff to set parameters and proceed with a bond sale within the board’s authorization. Trustees moved and seconded the resolution; the motion was adopted during the meeting, allowing district staff to work with the underwriting and pricing teams under the approved parameters.
District staff and Hilltop said final savings will be locked only at pricing and closing. Bauer noted the district has used prior refundings to produce substantial taxpayer savings: $47 million saved between 2021 and 2025, with additional potential savings from subsequent actions depending on market timing.
The board instructed staff to report back with sale results and an accounting of realized savings after closing.
