Crooked River Ranch Fire & Rescue refinances bonds, saves Taxpayers $328,000
Crooked River Ranch Fire & Rescue successfully refinanced its Series 2007 General Obligation Bonds that were originally issued in March 2007 following the successful passage of a $2,750,000 Bond Measure approved by the voters of the District. The Series 2007 General Obligation Bonds were issued to finance capital construction and improvements, furnishing and equipping the new fire station.
The District’s Board of Directors accomplished these savings by approving the issuance of its Series 2016 General Obligation Refunding Bond which closed on December 15, 2016.
The District, working with David Ulbricht of SDAO Advisory Services LLC, the District’s municipal advisor, had been monitoring the municipal bond market conditions and even though recent interest rates were increasing, a competitive process allowed the District to obtain debt service savings of over $328,000. The interest cost on the new financing is 2.48% compared to over 4.16% on the Series 2007 General Obligation Bond.
Since the 2007 Bonds were voter-approved, the District residents pay a property tax to pay repay the cost of the principal and interest on the 2007 Bonds. The property tax levied each year to service the bonded debt should be less for District residents as a result of refinancing the 2007 Bonds.
Crooked River Ranch Fire & Rescue Board President Kay Norberg responded with, “Working with staff, the Board of Directors are always looking for opportunities to be more efficient with District resources and being fiscally responsible with our patrons’ property tax revenue which the District relies on to provide the services expected by our tax payers”. Fire Chief Harry Ward added, “Working with SDAO, we noticed that interest rates were starting to rise and in the best interest of our District residents, we acted upon an opportunity to lock-in a rate and capture the debt service savings for our taxpayers ahead of the increasing interest rate environment”.
The reduction in debt service payments will be passed on to the taxpayers of the District by requiring annual lower property tax levy to repay the Series 2016 General Obligation Refunding Bonds.
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