Bond Refinancing to Save Waco ISD Taxpayers $15.8 Million through 2038
Waco ISD has refinanced approximately $106,740,000 of its existing bonds, resulting in an overall savings of over $15.84 million to district taxpayers through the remaining life of the bonds until the year 2038.
The district’s financial advisor, Robert Traylor of RBC Capital Markets, reports the bonds’ initial 4.28% interest rate has been reduced to approximately 1.655%.
“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.”
As part of this process, Waco ISD’s bond rating of “Aa2” was 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.”
This series of bonds from 2014–2016 are 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.