Good afternoon, riders.
Wanted to let you know DART’s Board of Commissioners met today and voted unanimously to issue $3.5 million in government bonds to replace an existing $3 million loan.
Even though the total amount is more (part of it is needed to finance the issuance of the bonds), the annual cost to DART will be less because the payments will be spread out over 10 years instead of five and the interest rate will be 2.65 percent instead of 5 percent.
Today’s vote was mostly a housekeeping matter, a final step to a plan put in place earlier this year, but it was important nonetheless. As those you who’ve followed this issue know, this cheaper debt let DART preserve about $300,000 worth of bus service during a tough budget year.
See this previous post for a full explanation of why DART took on the debt in the first place and what had to be done before refinancing was possible.