The San Marcos City Council has approved the early payoff of $760,000 in 1999 general obligation bonds in August, saving taxpayers an estimated $1,172,000 in future debt service and providing a present value savings of $411,683.
Schedule to mature in 2019, the bonds were issued in 1999 to refund 1992 and 1994 bonds sold to pay for street improvements, land acquisition, fire station construction and related equipment. General obligation bonds are secured and repaid through property taxes.
The City Council unanimously approved a resolution on July 1 authorizing the early redemption of the bonds.
“We identified these bonds as available for early pay off on August 18, 2008,” said Rick Menchaca, City Manager. “Analysis by our staff and financial advisors indicated that it would be advantageous for us to redeem the bonds now and save on long term interest costs.”
The cost savings were planned during the budget process following analysis by Finance Director Rosie Vela and the City’s financial advisor, First Southwest.
By MELISSA MILLECAM
Communications Director – City of San Marcos