Belton ISD refinances bonds to save money
BELTON ISD PRESS RELEASE — On Thursday, February 14, Belton ISD refinanced approximately $8.2 million of its Series 2006 Bonds to take advantage of lower interest rates in the bond market.
Belton ISD previously refinanced approximately $19 million of its Series 2004 Bonds in April 2012.
The 2006 bonds carried interest rates between 4.875 and 5%, while the new bonds have an average interest rate of 2.584%. This results in savings to the District of approximately $2.1 million over the life of the bonds. Average annual savings to Belton ISD will be approximately $115,654. The savings are attributed to monitoring market conditions and identifying savings in the market, similar to an individual refinancing a home mortgage.
Jennifer Douglas, the District’s financial advisor with Specialized Public Finance, said, "At the end of 2012, the Board gave its authorization to move forward with this refinancing if savings hit a minimum threshold. We had to wait a few weeks longer than expected as the federal debt discussions in Washington impacted some aspects of the bond markets, but we were able to lock-in savings as soon as markets rebounded. Our target was at least $2 Million in savings, so we were pleased to be able to exceed that for the taxpayers."
According to Superintendent Dr. Susan Kincannon, “Belton ISD has been aggressive in refinancing existing bonds when savings exist. This is the District’s fourth refinancing since 2010, resulting in combined taxpayer savings of $5.1 million. Our strong bond rating of AA- from Standard & Poor’s assisted in obtaining such a low interest rate. We continue to strive to be good stewards of our taxpayers’ dollars.”