Snyderville Basin Special Recreation District to refinance bonds
To save Snyderville Basin taxpayers’ money, officials with the Snyderville Basin Special Recreation District have decided to refinance the remaining portions of two bonds.
District Director Rena Jordan recently approached the Summit County Council about refinancing a portion of a 2004 bond and a portion of 2008 bond when the district enters the financial market later this month. A couple weeks ago, the County Council authorized the sale of general obligations bonds not to exceed $25 million.
The Snyderville Basin Special Recreation District Board is working with Zion’s Bank, that was hired as a financial advisor.
"What we’ve seen is you’ve had interest rates decline by more than .5 percent," Brian Baker, with Zion’s Bank, told the council. "A lot of bonds that weren’t on the radar are now and we felt this made a lot of sense for the district to take on. We are in a very positive situation for getting low rates and for refinancing these bonds."
The estimated savings from refinancing the bonds is $475,000.
"We won’t know for certain until the day we go to sell it," Jordan said. "It could be more, it could be slightly less. But it puts us in a better position because it saves money and lowers our debt service."
Refinancing the bonds does not extend the life of the bonds. The final maturity for both the 2004 and 2008 bonds is still Dec. 15, 2028.
The Snyderville Basin Recreation District plans to enter the market on Feb. 25, with a target closing date of March 11.
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Summit County officials declared their potential conflicts of interest, with Councilors Doug Clyde and Chris Robinson offering the most extensive lists on the County Council.