Roaring Fork School District taxpayers to see savings in refunding of 2016 bond issue
Taxpayers in the Roaring Fork School District should see about $8 million in savings over the next 14 years due to a refunding of bonds that were part of the overall $122 million 2016 bond issue.
The local school board last week unanimously agreed to authorize the district to reissue $105.2 million of that amount. That should bring about $574,000 in annual savings to the district through 2035, Nathan Markham, chief financial officer for the district, explained in a memo to the board.
The original bond issue was approved by district voters in November 2015, with about 60% of voters from Glenwood Springs to Basalt favoring the measure.
It resulted in the construction of the new preK-8 Riverview School south of Glenwood Springs, at an original cost of $34.5 million.
Another $20 million went to the renovation and expansion of Glenwood Springs Elementary School, and $5 million went to create an affordable teacher housing program in each of the three Roaring Fork District communities.
The bonds are to be paid back over 20 years through a dedicated property tax mill levy. The mill levy amounted to about $55 per year per $100,000 of residential property assessed value, and $260 per year per $100,000 of commercial value.
“Periodically, market conditions allow us to refund (refinance) a portion of our general obligation bonds due to lower interest rates, resulting in savings to our taxpayers,” Markham wrote in the memo that was before the school board at a June 29 special meeting.
The refinancing is to be completed within the next year at an interest rate not to exceed 2.5%, and bond maturity is to be no later than Dec. 15, 2035, according to the refinancing proposal.
The overall savings on the principal amount owed is expected to be 5%, Markham said.
Senior Reporter/Managing Editor John Stroud can be reached at 970-384-9160 or email@example.com.
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Prospective candidates are being sought for two open Carbondale/Basalt-area Roaring Fork Schools Board of Education seats that will be up for election Nov. 2 for four-year terms.