WACO, TX — Waco ISD has refinanced more than $100 million of its existing bonds, a move the district says will save taxpayers millions of dollars.
The district announced Wednesday it has refinanced approximately $106,740,000 of its existing bonds. Officials say this will result an overall savings of more than $15.84 million to district taxpayers through the remaining life of the bonds until the year 2038.
The bonds' initial 4.28% interest rate has been reduced to approximately 1.655%, according to the district's financial advisor, Robert Traylor of RBC Capital Markets.
“This was a clear opportunity to demonstrate good fiscal stewardship of district and community resources,” said Waco ISD Superintendent Dr. Susan Kincannon. “With RBC Capital Markets’ guidance, our business and financial services department has taken advantage of low bond interest rates to save taxpayers money and reduce the district’s debt service costs.”
The district's bond rating of "Aa2" was also reaffirmed by Moody's Investor Service.
“This is a very strong rating and reflects the district’s history of conservative budgeting and management practices,” said Waco ISD Assistant Superintendent of Finance Sheryl Davis. “We are pleased that favorable market conditions provided us the opportunity to refinance these bonds to benefit the district and taxpayers.”
The series of bonds are from 2014-2016 and part of an earlier refunding of bonds issued to fund the construction of University High School and three elementary campuses, including J.H. Hines, Bell's Hill and Dean Highland.