Trustees Save Taxpayers $67.1 Million by Refinancing Bonds
During the Oct. 13 Board of Trustees meeting, trustees adopted a “Parameters Bond Order” authorizing the refinancing of bonds. The new parameters, paired with favorable market conditions, led to a total actual net savings of $67,124,217 for taxpayers of the district.
Based upon favorable bond market conditions, parameters were met and the district finalized the refinancing of existing bonds on Nov. 24. Advantageous bond market conditions helped successfully reduce the interest rate on the District’s bonds from 4.89 percent to 2.11 percent.
The refinancing of existing bonds is part of the debt management practices the board has used to lower the borrowing costs of taxpayers throughout the years. Since 2005, this practice has reduced the cost of voter-approved bonds resulting in $274.4 million in direct savings to district taxpayers.
“The strong debt management practices put in place by our Board of Trustees and favorable market conditions have resulted in substantial savings for our taxpayers,” said Dr. Scott Niven, chief financial officer. “We will always look for opportunities to create efficiencies for our taxpayers by lowering our interest costs and paying off debt early when the opportunities arise.”