Scottsdale Unified School District achieved a 2 percent reduction in interest rates and an immediate savings of almost $1.6 million for its taxpayers with the resale this week of almost $76 million in bonds.

"We’ve been watching the market, and waiting, waiting, waiting, for the most opportune time to re-issue the bonds," noted Bob Flach, chief financial officer for the District. The resale took place Monday, and the net savings over the new life of the bonds is projected at almost $10.4 million for SUSD taxpayers.

“This means a reduction in property taxes,” Mr. Flach added.

The savings was achieved through a combination of lower rates—an average 3.81 percent vs. the previous average of 5.13 percent—and a reduction in the life of the bonds to 15 years from the previous 20.

At its Dec. 10 meeting, the Governing Board authorized the refinancing of the bonds, up to $165 million, and set as minimum criteria a present value savings difference of at least 2 percent.

"We will continue to watch the market, and plan to refinance additional bonds this spring," Mr. Flach said.

"While this type of debt restructuring does not add any money to the District’s operating budget, it is a fiscally sound business practice and positions the District to maximize future bonds," Mr. Flach said.
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