In a recent government meeting, discussions centered around the potential for a significant bond issuance while simultaneously lowering the Interest and Sinking (INS) tax rate. The board is considering a bond of approximately $1 billion, which would be structured over three years, with the first sales occurring in 2025. This plan aims to provide financial relief to taxpayers by reducing the INS rate by one penny starting this September, with further reductions anticipated in subsequent years.

Trustee Weir raised concerns about the feasibility of maintaining scheduled defeasance payments while lowering the tax rate. Financial advisors confirmed that the district would still be able to meet its $25 million cash defeasance payment for 2025, although the impact on future payments would need to be monitored closely. The model used for these projections has been adjusted to account for lower-than-expected growth in property values, now estimated at a conservative 5% annually for the next decade.

Trustee Bone questioned the assumptions underlying the financial model, particularly regarding home price fluctuations and interest rates. The financial team acknowledged the uncertainty in property value growth but expressed confidence in their conservative approach, which includes a 99% tax collection rate assumption and a structured debt repayment plan.

Concerns were also raised about the implications of lowering the INS tax rate while maintaining a large bond issuance. Trustee Weston highlighted the need for clarity on how these decisions could affect the payoff timeline and overall financial strategy. The board is actively exploring various models to balance taxpayer relief with the district's financial obligations, emphasizing the importance of transparency and thorough analysis in their decision-making process.

As the board moves forward, they are committed to ensuring that any financial strategies align with both the needs of the community and the district's long-term fiscal health.