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Bond Refunding

Community Independent School District recently refinanced a series of previously issued bonds at a reduced rate of interest in an effort to save the District millions of dollars in interest in coming years. Bond refunding essentially is a refinancing of the district’s debt, allowing the District to take advantage of lower interest rates.

As a result of board action taken at the March 21, 2017 meeting, the district recently entered into a bond refunding transaction which resulted in a total debt service savings of $2.1 million, bringing the 10-year Bond Refunding total net amount interest cost savings for our taxpayers on previously issued bonds to over $10.7 million.  (see chart below)

ISSUE

Lowered Interest Rate

Total Debt Service Savings

Less Cash

Contribution

Net Interest Cost Savings

Series 2007 Refunding

From a high of 5.40%
to a low of 3.85%

$159,825

$159,825

Series 2008 Refunding

From a high of 5.95%
to a low of 2.55%

$1,025,697

$1,025,697

Series 2013 Refunding

From a high of 6.83%
to a low of 2.41%

$2,330,000

$300,000

$2,030,000

Series 2015 Refunding

From a high of 5.00%
to a low of .30%

$2,456,599

$2,456,599

Series 2016 Refunding

From a high of 5.00%
to a low of .50%

$1,993,730

$1,993,730

Series 2016A Refunding

From a high of 5.86%
to a low of .80%

$2,995,723

$1,500,000

$1,495,723

Series 2017 Refunding

From a high of 5.00%
to a low of .95%

$2,124,051

$500,000

$1,624,051

TOTAL

$13,085,625

$2,300,000

$10,785,625


When asked about the unanimous decision of the Board to approve the Bond Refunding Program, Superintendent Dr. Roosevelt Nivens said, “We are blessed to have a Board of Trustees that is very intentional about being good stewards of taxpayer dollars. In Community ISD we are committed to being transparent and embracing accountability.” CISD Board President Mike Shepard stressed the need to share this information with the public. “We want our stakeholders to know that we embrace the accountability they have entrusted us with. We are always looking for ways to save money for the district and manage our resources wisely,” said Shepard.


The last bond program conducted in Community ISD was approved by voters on May 12, 2007. The $20 million bond package raised the I&S tax rate to the current 45.5 cents. The funds were used to construct NeSmith Elementary, construct a new cafeteria at CHS and renovate the existing cafeteria into classroom space. Voters also approved a $10 million bond package in 1999 which was used for additions and renovations at McClendon Elementary and Community High School.