Taxpayers Save Money – SCFD8 took advantage of historically low interest rates in the municipal bond market and completed the refinancing of its 2000 voter approved bonds. These original bonds proceeds were used to finance the acquisition of land, construct a fire station, and purchase new apparatus and equipment.
The refiancing will reduce debt repayment costs by $480,000 over the remaining 10-year life of the bonds. Working with Martin Nelson and Company, the District was able to replace the 5.51% average interest rate currently paid on its outstanding 2000 debt with a new rate of 2.31%. In addition to the low interest rate, the District achieved a one step upgrade in the bond rating to “AA” from Standard & Poor’s, the second highest grade from the top level of the “AA” category.
“We continue to seek ways to be effective and efficient with taxpayer funds” said Chief Bill Walkup. “We know our residents are concerned about the economy and we felt these cost reduction efforts were important. The District chose to enter the bond market now so that taxpayer savings could be achieved while interest rates are still at generational lows,” said Chief Walkup.