San Marcos City Council plans to refinance bonds to save taxpayers more than $1 million
The San Marcos City Council approved a resolution last night giving staff the green light to refinance bonds for Community Facilities District (CFD) 88-1. By refinancing the $22.59 million of outstanding bonds from 5.8 percent to approximately 4 percent, taxpayers in the Santa Fe Hills area of San Marcos could save an estimated $1.2 million in tax payments over the next 16 years.
Community Facilities Districts, or Mello-Roos as they are more commonly known, help finance local public facilities and services like law enforcement, fire, landscaping, lighting and other community services. Cities often consider refinancing these long-term bonds if market conditions are favorable enough to save taxpayers money, something San Marcos has done at least a half a dozen times over the past 20 years to capture similar savings.
The city oversees several CFDs; however, CFD 88-1 would be the only bond refinanced under this action. About 1,749 residential units would experience an annual special tax savings ranging anywhere from $50 to $145. This estimate could change given market conditions when the bonds have actually been priced and sold.
“This move will bring real savings to many San Marcos taxpayers,” explained City Manager Paul Malone. “And in this economy, every little bit helps.”