Update: Refinancing Bonds Saves $16 Million

Update: Refinancing to save $16 million

Update: Rockwall ISD recently took action to refinance the bonds from the 2006 bond referendum. Thanks to favorable market conditions the refinancing saved more than expected. Rockwall ISD will save $16.8 million over the life of the bonds. This works out to more than $1 Million dollars in savings for the next 16 years. Rockwall ISD secured an interest rate of 2.59%.


Original Story:

The Rockwall Board of Trustees have unanimously voted to take advantage of historically low interest rates and refinance the remaining bonds from the 2006 bond referendum.

The decision was made in last week’s school board meeting after a brief presentation about the current bond market from FirstSouthwest. FirstSouthwest, one of the country’s largest diversified investment banks, provides public financing consulting and analysis for municipalities and public school districts.

Representatives from FirstSouthwest predict the refinancing of the bonds will save Rockwall ISD taxpayers approximately $12.8 million – $14 million, based on current interest rates.

“Much like a homeowner refinances a mortgage using lower interest rates, we have decided to take advantage of low rates and refinance our bonds from the 2006 bond package,” said Jeff Bailey, Rockwall ISD Superintendent. “Not only will this move provide millions of dollars in savings for our taxpayers, it will provide a substantial reduction of the district’s overall debt.”

Randy McDowell presenting information

CFO Randy McDowell shares details of bond refinancing at a Board of Trustees meeting.

“The district continually looks for ways to find savings and reduce our debt and this is just another example of doing that,” added Superintendent Bailey.

Rockwall ISD has won numerous awards for fiscal responsibility and transparency. The district’s current tax rate is the lowest it’s been in the past 20 years – and is one of the lowest rates in North Texas.

The mission of Rockwall ISD, a diverse and unified community embracing endless learning possibilities, is to inspire and develop the unique abilities of our children to become passionate learners, extraordinary citizens and authentic leaders of the 21st century by cultivating an engaging learning environment based on high standards and expectations in a culture of kindness and compassion.

The Rockwall ISD administration is available to answer any questions about the bond referendum. To arrange an interview or schedule an informative presentation for local clubs or organizations, please contact Renae Murphy at 972-771-0605.

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