Poudre School District refinanced some of its bonds earlier this fall, saving taxpayers about $2.4 million they would have paid in taxes to the district over time.
School districts maintain debt in the form of bonds. Due to economic conditions caused by the COVID-19 pandemic, the taxable market rates dropped to the point where PSD refinanced some of the district’s tax-exempt debt from 2012 and 2015. Think of this like a homeowner refinancing their home loans, ultimately saving money on overall interest payments.
“It is our duty to act as responsible stewards of public funding,” said PSD Executive Director of Finance Dave Montoya. “And part of that duty includes actively tracking economic conditions, monitoring the district’s debt portfolio and making decisions like this to reduce our taxpayers’ payments over time. It has always been important to save our taxpayers money, when possible. This refinance was more important than ever, knowing that so many family budgets have been hit hard throughout the pandemic.”
PSD staff are thankful to the team at RBC Capital Markets for advising the district of the opportune timing for the refinance, which PSD officially closed on Oct. 21. On Sept. 22, the PSD Board of Education passed a resolution supporting this action.
- Review the resolution approved by the school board and supporting documentation from the Sept. 22 board packet. >>