Refinancing bond saves millions

Press release
Posted

Douglas County School District's decision to refinance its bonds this month will save taxpayers up to $4,697,000.

The District entered the bond market Feb. 16 to refinance $71,095,000 of their outstanding Series 2005, 2006, and 2007 general obligation bonds.

The bond refinancing will allow the District's taxpayers to generate savings of approximately $245,000 per year in 2012 -2030 without extending the life of the original bond issue.

The Series 2012 tax-exempt refunding bonds have an average interest rate of 2.91 percent and will be replacing maturities in the 2005, 2006, and 2007 tax exempt bonds that had an average interest rate of 5.00%.

"We are committed to doing everything possible to meet the needs of our teachers and students, while also being good stewards of taxpayer dollars," said DCSD Chief Financial Officer Bonnie Betz.

The low borrowing cost is attributed in part to the district's high investment grade rating of Aa1 (Moodys) and AA+ (Fitch), which reflects the District sound financial management, including a solid fund balance, and strong property tax base.

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