GCISD taking steps to save taxpayers $12.8 million in interest costs
The GCISD Board of Trustees recently approved the refunding of voter-approved bonds to take advantage of lower interest rates, which is projected to result in approximately $12.8 million in interest savings to the district and its taxpayers. This step is part of a strong fiscal management program that has saved taxpayers a total of $35.4 million in interest costs on voter-approved bonds since 2004. This new refunding will add even more to these savings.
“We are continually monitoring the market to take advantage of opportunities that benefit our debt structure and lower costs for our taxpayers,” said DaiAnn Mooney, GCISD Chief Financial Officer. “By refinancing bonds with lower interest rates, we capture direct savings for our taxpayers.”
Municipal interest rates have declined since the district refunded the Series 2006 Bonds and favorable market conditions make it advantageous for the district to refund the bonds once again. The district is refunding these bonds as soon as allowed by law, which is April 2016. District personnel will watch the market closely and obtain pricing when interest rates are most favorable. Based on projections, the refunding could reduce the interest rate from 4.91 percent to 2.85 percent. This significant rate reduction will result in GCISD taxpayers paying approximately $12.8 million less in interest costs on the voter-approved bonds. The refunding parameters include keeping the maturity date the same.
“As part of our continued financial management, we strive to be good stewards of taxpayer dollars,” Mooney said. “Refunding debt is another way we can achieve this goal and help provide the resources and opportunities that make GCISD a premier district for our families.”