BISD Board Approves Unlimited Tax Refunding Bonds, Series 2016 Potential Savings of .5M in Taxpayer Dollars
At the March 15 School Board Meeting, the Board of Trustees unanimously approved the unlimited tax refunding of bonds, for a possible half-million (7.27%) savings to the District.
Administration has worked with the district’s financial advisor, US Capital Advisors, to seize the opportunity to refund bonds from the district’s Unlimited Tax Ref. Bonds, Series 2007, to take advantage of current favorable interest rates.
“Bond refunding is similar to refinancing a home,” said Dan Schaefer, Chief Finance & Governmental Affairs Officer. “The borrower is taking advantage of lower interest rates than what existed when the original loan was executed.”
District bond debt payments are funded by local property tax dollars, so the possible half a million dollars in savings will be passed on to Brazosport ISD taxpayers. “The timely sale of these bonds will help the District to sustain the current I&S tax rate of 21.53 cents and allow the District to start the second round of the $175M bond program roughly 7 months earlier than originally planned,” stated Schaefer.
“We are fortunate to have a board and administration that are dedicated to being proactive with the District’s finances,” said Superintendent Danny Massey. “This action indicates how serious our board takes the fiscal responsibility to honor our commitment to taxpayers at the passage of the 2014 Bond, to sell the bonds at a pace that would maintain the current tax rate.”
The bond sale will open April 13 and close May 17.