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Board hears bond-refinancing plan that could save taxpayers about $6.5 million
Summary
Government Financial Services outlined candidate bonds and recommended a resolution to authorize refinancing; presenters estimated $6.5 million in net savings for taxpayers over 17 years and noted the district's upgraded credit rating.
Representatives from Government Financial Services told the board the district has multiple refinancing opportunities and recommended the board consider authorizing a resolution in March to permit an April bond sale and May closing. Presenter Keith Weaver said refinancing candidate bonds could lower interest rates and produce taxpayer savings: "the outcome of this would be savings for taxpayers of $6,500,000 over the remaining 17 years."
The presenters noted Measure L (2018) and five historical measures as the primary sources of capital funding and said lower current market rates, upcoming call dates and an improved credit rating create an opportunity to refinance. They estimated some individual refinancing opportunities would exceed the Government Finance Officers Association's minimum present-value savings metric (one bond showing about 11% savings and another about 6%), and suggested bundling to achieve net benefit.
Trustees asked clarifying questions about the credit rating and the presenters explained that an upgraded Moody's rating (AA3 to AA2) allows the district to achieve lower interest costs. Staff asked the board to consider a resolution at the March 11 meeting to authorize refinancing and, if approved, to complete bond sales in April and close on May 7 so savings can be realized and reported back to the board.
