City refinances bonds to save taxpayers more than $4.6 million
On October 23, the City of San Marcos refinanced bonds to save money for more than 1,700 property owners in Twin Oaks Valley Ranch and certain areas of San Elijo Hills. Without extending the bond payback period, this move will save taxpayers more than $4.6 million in Mello-Roos special taxes over the next 24 years. Average annual savings per homeowner are expected to range from $150 and $600.
The bonds are part of Community Facilities District (CFD) 91-01 and CFD 99-01 and help pay for public infrastructure such as roads, utilities, and water and sewer facilities. Marking the fourth bond refinancing in the last three years, this move refinances $37.4 million of outstanding bonds and reduces interest rates from 4.9 percent to 3.1 percent.
Similar action was taken in 2012 when the City refinanced $54.2 million in bonds to save taxpayers in Old Creek Ranch, certain areas of San Elijo Hills and the Paloma/Santa Fe Hills area an estimated $4.1 million. The outstanding bonds are for Community Facilities Districts (CFD) 2002-01 and certain areas of CFD 99-01 and CFD 88-1.
Community Facilities Districts, or Mello-Roos as they are more commonly known, help finance local public facilities and services such as 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 money – something San Marcos has done at least a half a dozen times over the past 20 years to capture similar savings.
For more information about the City’s budget, please visit www.san-marcos.net/finance.