Texas School District Bond Refi to Save $16 Million

A Texas school district has refinanced its outstanding bonds, a move that it expects will save nearly $16 million. According to Waco Independent School District, the bonds' maximum interest rate of 4.28 percent has been cut down to 1.655 percent. That will save $15.84 million over the remaining life of the bonds, which ends in 2038.The bonds total $85.3 million.

"This was a clear opportunity to demonstrate good fiscal stewardship of district and community resources," said Superintendent Susan Kincannon, in a statement. "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."

As part of the process, the district's Moody bond rating of Aa2 was reaffirmed.

"This is a very strong rating and reflects the district's history of conservative budgeting and management practices," added Assistant Superintendent for 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 funding, which involved a series of bonds, paid for construction of a high school and three elementary campuses.

About the Author

Dian Schaffhauser is a former senior contributing editor for 1105 Media's education publications THE Journal, Campus Technology and Spaces4Learning.

Featured

  • Classical building columns display digital data streams

    The Campus Nervous System: Why Facilities Risk Is Now a Leadership Issue in Higher Education

    Facility performance now intersects with safety, compliance, on-campus experience, institutional reputation, and financial resilience. That places it firmly on the leadership agenda.

  • Rowan University, HPE Partner on New Learning Initiative

    Rowan University in Glassboro, N.J., recently announced that it has expanded its partnership with enterprise technology provider HPE to improve research capabilities and hands-on learning opportunities, according to a news release.

  • FGCU Breaks Ground on New Health Sciences Building

    Florida Gulf Coast University (FGCU) has launched construction on a major new academic facility that leaders say will reshape healthcare education in Southwest Florida for decades to come, according to university news.

  • Barbara Vick Western Branch

    Barbara Vick Western Branch

    Established in 1999, the Education Design Showcase is a vehicle for showing off innovative — yet practical — solutions in planning, design, architecture, and construction. The Barbara Vick Western Branch has been recognized with an EDS 2026 Grand Prize award in the category of Renovation.