GCISD bond sale secures 2.8% interest rate
Grapevine-Colleyville ISD has issued a portion of the $248.97 million bond package approved by voters in May. The district issued $188.65 million in bonds for the 2016 bond program at an interest rate of 2.8 percent. Prior to the public’s vote on the bonds, the district communicated to voters a projected maximum Interest and Sinking (I&S) tax rate increase of 12.81 cents. As a result of a secured lower interest rate, the actual I&S tax increase for these bonds will be 7.66 cents. The interest rate for the remaining unsold bonds could vary.
“We remain grateful for the community support we received during the 2016 bond election, and we are excited to have sold bonds at a lower interest rate than initially projected,” said Dr. Robin Ryan, superintendent of schools. “As we continue redefining education in GCISD, these bonds will further enhance the learning experience for all students. The new facilities and technology, upgrades and renovations to existing structures and the purchase of new equipment will help propel our students and staff as we continue to strive for success each and every day.”
By securing the 2.8 percent interest rate, projections show that over the 25-year repayment period, GCISD taxpayers will pay $84.9 million less in interest costs than what was originally projected for the 2016 bond program.
The new total tax rate will be $1.3967, which includes $1.04 for Maintenance & Operations to pay for operating costs and $.03567 to pay for voter-approved debt. Even with the tax increase for the 2016 bond program, the total tax rate remains lower than the 2005 rate of $1.70.
By federal law, bonds that are sold have to be spent within three years from the date of sale. When evaluating what projects needed to be completed in the first three years, the total amount equaled $188.65 million.
Taxpayers can visit the 2016 bond website to calculate the monthly and annual tax increase based on their individual home value, as well as view additional resources related to the bond.
Over the past five years, GCISD has reduced the borrowing cost of voter approved bonds by more than $46.6 million. The district has saved $42.93 million through bond refundings and prepayment of bonds, and $3.69 million by securing lower interest rates through the prudent use of variable rate bonds.