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Board authorizes possible refinancing of Measure U bonds, adviser estimates ~$1.3M taxpayer savings
Summary
The board adopted Resolution 25-16 to authorize potential refunding of Measure U Series B bonds; adviser Chris Hyatt estimated net present-value savings of roughly 7% and an estimated $1.3 million in taxpayer savings if market conditions allow.
Chris Hyatt (S18), the district’s financial advisor, presented a proposal to refinance outstanding Measure U general obligation bonds (primarily Series B, and optionally remaining Series A) to capture interest-rate savings for taxpayers. Hyatt said the financing team is estimating net savings of about $1.3 million (net of costs) and a present-value savings percentage around 7%, well above the common 3% benchmark for considering a refunding.
Hyatt outlined execution options (current delivery vs. forward delivery) tied to market timing and said the refinancing would not extend the bonds’ final maturity. He said if the board authorized the documents that evening, staff would pursue a rating update and market timing decisions; the refinancing would close no earlier than November 2026. The board moved, seconded and adopted Resolution 25-16 to authorize the potential refunding process.
