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Centennial SD refinancing update: staff reports refinancing could yield nearly $900,000 in savings; sale targeted around Oct. 2
Summary
District staff reported a planned refunding of 2017 AB and D bonds could produce nearly $900,000 in present value savings (up from an earlier $625,000 estimate); staff outlined a Moody's ratings call, due diligence steps next week and a bond sale targeted around Oct. 2.
District staff briefed the finance committee on a proposed refunding of Centennial SD's 2017 AB and D bonds, saying improved market expectations lifted the projected present value savings to just under $900,000.
The committee heard that the plan mirrors a previous 2016 refunding approach and that PFM advisor Garrett Moore and bond counsel Bill Benzing (Eert) previously presented elements of the structure. Staff said a recent revision to long‑term rate expectations following labor market data helped increase estimated savings from roughly $625,000 to nearly $900,000.
Timing and process: Staff outlined next steps, including a ratings call with Moody's, a due‑diligence conference with the bank and advisors, and a target bond sale around Oct. 2. A smaller, follow‑on refunding is expected in February–March and may yield additional savings.
Budget context: The refinancing savings are one‑time present‑value benefits that staff said could be used to smooth future debt service or, after the appropriate transfers, support capital projects. Staff also cautioned that an approximately $900,000 charge from the intermediate unit (IU) will be pushed into FY24–25 numbers and noted timing differences that affect the district's reported surplus.
Next steps: Staff will proceed with the ratings call and diligence steps; no board action was required at the Sept. 11 committee meeting. The finance committee will receive updates as the October sale date approaches.
