NISD Board Approves Unlimited Tax Refunding Bonds
At the October 13 School Board Meeting, the Board of Trustees unanimously approved unlimited tax refunding bonds of approximately $14 million, increasing the total savings to district taxpayers to $52,063,007 this year.
Administration has worked with the district’s financial advisor, First Southwest Company, to bring a parameter order authorizing the issuance of bonds for a Tax Exempt Advance Refunding of series 2005, 2008, 2009 and 2010 bonds that would lower the interest cost to the district and its taxpayers.
“Bond refunding is similar to refinancing a home,” says Associate Superintendent of Business and Operations Jon Graswich. “The borrower is taking advantage of lower interest rates than what existed when the original loan was executed.”
This year, the board has approved three unlimited tax refunding bonds which have reduced the district’s overall debt service requirements:
Series 2015 (January 2015) $15,395,575 Actual Savings
Series 2015A (July 2015) $22,762,776 Actual Savings
Series 2015B (October 2015) $13,904,656 Actual Savings
“To put in perspective, the district’s savings equaled the approximate cost of two new elementary schools or one middle school,” Graswich explains.
District debt payments are funded by local property tax dollars, so the savings are passed on to Northwest ISD taxpayers. “It has always been a priority to remain fiscally responsible with our taxpayer’s funds, and we are fortunate we have a board and administration that is dedicated to being proactive with the district’s finances,” said Superintendent Karen G. Rue, Ed.D. “This board action indicates how serious our board takes the district’s goal to invest resources that ensure parents, students and community members receive optimal educational services.”