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District reports $1 million in savings from bond refunding
Summary
Finance staff reported the Oct. 2 bond sale yielded roughly $1,000,000 in total savings (about $71,000 per year) and a net present value savings of 6.78%, better than earlier projections of $600,000.
District finance staff updated the board on a bond refunding that closed in early October. The sale, executed Oct. 2 with a scheduled closing on Oct. 15, yielded higher-than-projected savings: staff reported a total estimated savings of $1,000,000 and a net present value (NPV) savings of 6.78%.
“We had projected savings of $600,000… the final numbers came out to be a savings of $1,000,000 in total, which is around $71,000 per year, and the net present value savings was 6.78%,” the finance staff member said. Board members noted the annual savings compare to the cost of roughly one full staff position and thanked finance staff for the favorable outcome.
The board did not take formal action on the item at the meeting; finance staff indicated the bond closing and final paperwork are in process and invited questions, of which none were raised.
