The has been exploring refinancing a fully issued $22 million bond that could potentially result in over $4 million in debt service savings.
In March 2002, the voters approved Measure B, giving the District authorization to issue $22 million in General Obligation Bonds. All $22 million was issued and taxpayers have been repaying on the bonds since then.
Bond refunding is the same as financing a mortgage or loan.
“Any time we can save money to the taxpayers, we should go for it,” said trustee Maria Diaz-Slocum.
Property owners could save $1.70 average tax rate per $100,000 assessed value. For a $500,000 assessed value, taxpayers could save $8.50.
This would result in no loss or gain to the district’s revenues.
“We want to make sure that taxpayers know this is in no way is giving the district more money,” said trustee Alisa MacAvoy, noting the separate parcel tax campaign, in which the district hopes to generate another source of revenue.
The consultant, KNN Public Finance, will work on a contingent basis and will only be compensated upon the successful completion of the financing.
Ruth Alahydoian, Vice President of KNN Public Finance, said that she could return to the next board meeting with further steps to approve this bond refunding. She estimated the portion of the savings that the consultant would take would be $250,000 for various legal and underwriting fees.
Alahydoian added that the district’s A+ credit rating could improve by demonstrating the ability to refund money to taxpayers. AAA credit rating is the highest.
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