The St. Vrain Valley School Board unanimously approved the early discharge of the district’s 2012 bonds.
The move will save the district and its taxpayers $767,000 by calling and paying early the three remaining maturities from the bond issued in February of 2012. The action will reduce the longevity of the outstanding debt by about two years, reducing the total amount of interest paid.
The bonds became subject to call and redemption last year, meaning they could be paid off at the principal amount plus accrued interest without penalty. The outstanding principal balance was $16.4 million.
“We’re taking any opportunities we can to pay debt early and eliminate those interest payments,” Executive Director of Budget and Finance Tony Whiteley said to the school board on Wednesday.
According to a staff report to the board, St. Vrain has sufficient resources available in its bond redemption fund to cover the early redemption of the bonds.
The bonds originally had a payment schedule of 12 years with the final payment date scheduled for Dec. 15, 2024, with a total interest of $12.8 million.
