Less than two years after voters approved a record $975 million school bond, Denver Public Schools is refinancing older debt — a move district officials say will save taxpayers money while creating capacity for another bond election.

The district has roughly $2.4 billion in outstanding bond obligations. Under the Colorado constitution, voter approval is required to acquire public debt.

District officials are looking to refinance $436 million in callable debt from bond issuances in 2012 and 2017, said Katie Hechavarria, executive director of finance. The move is expected to save taxpayers $29.7 million.

“It also allows the district to create capacity for a future bond election, if that is something the board chooses, without having to increase the amount that it raises from Denver taxpayers,” Hechavarria said.

The district has $452.1 million in outstanding principal from the two bond series, district data show.

Officials plan to refinance $436 million, while the remaining roughly $16 million is scheduled to mature in December, said Bill Good, a district spokesperson. The district expects to issue $404.5 million in new bonds and use an additional $31.5 million premium generated from the sale to pay off the existing debt.

The refinancing essentially lowers the cost of existing debt, creating room for Denver Public Schools (DPS) to borrow more later without increasing the amount it needs to raise from taxpayers to cover the principal and interest.

In September, the district refunded $67 million in bonds to “save” taxpayers $9 million by reducing the district’s debt.

The refinancing lowers the cost of existing debt. It does not necessarily translate into lower property taxes.

Had Denver voters rejected the nearly $1 billion bond measure in 2024, taxpayers could have saved about $20 million a year in “five or six years,” Chuck Carpenter, the district’s chief financial officer, has said.

But this scenario also assumes voters reject future bond proposals — a pattern that has not held in recent decades.

Denver taxpayers have been counted on to consistently pass bond measures, approving more than $3.8 billion to maintain the district’s aging buildings and support classroom instruction since 1998.

That consistent support every four years has proven critical because DPS lacks a long-term facilities plan, reflecting a pattern of a district that relies heavily on voters funding basic needs.

Without new bond money, the district would face “hard choices,” Carpenter has said.

“We don’t have a revenue stream that would replace the bond right now,” he said.

Maintenance isn’t sexy. So, district officials routinely fill the bond with items taxpayers would vote for, such as new gymnasiums and air conditioning. The 2024 bond alone earmarked $240 million to provide air conditioning for 29 schools for more than 20,000 students.

With a 55-year-old average building age, officials have identified $7.9 billion in rebuilding and replacement costs for all buildings across the district, according to a 2019 assessment.

The district has faced criticism over its use of bond money, and, in recent years, several decisions about how those dollars were spent have drawn scrutiny.

This was underscored by a district promise that every school would benefit from the 2024 bond, even as officials knew they were preparing to close or restructure 10 schools — a list released only after the election.

District officials presented the bond refinancing during the Board of Education’s Finance and Audit Committee Monday. The board has delegated debt refinancing to the superintendent and a designee.

Hechavarria said the goal is to close on the deal in September.