CISD Bond Sale Results in Low Interest Rate--and Savings to Tax Payers
When Cleburne ISD closes on the sale of bonds approved by voters for campus and technology improvements and upgrades, the impact on debt service will be $12.65 million less than what was projected.
The $68,274,249 bond sale conducted by the District’s financial advisors on June 30 came with an interest rate of 2.491 percent.
“We were thrilled that the community passed the bond propositions to address the academic and facility needs of students,” Superintendent Dr. Kyle Heath said. “Bond 2021 was a ‘no tax rate increase’ referendum. To follow up with a bond sale at a rate that will ultimately save taxpayers over the life of the bond is tremendous. We are excited to share this news with our stakeholders.”
“We hit a good stride in the market,” Heath said. “To secure an interest rate of 2.5 percent for municipal and school bonds is great—and a great savings to tax payers. But to secure a rate of 2.491 percent is even more so. I’m not sure how many school districts have experienced this.”
A major factor in the bond sale was the Moody’s top rating of Aaa/Aa3 for CISD, reflecting the quality and stability of the bonds to potential investors.
“The financial security of our district, which is reflected in our bond rating, was a very positive factor,” Heath said. “It all begins with a good financial position, led by our Board of Trustees and their financial stewardship. The leadership of Sarah Taylor, our Chief Financial Officer, our Business Department and all CISD employees have been vital to the stability of this district.”
“We’ve all agreed we hit the market at a great time in terms of interest rates,” Taylor said. “To come in at $12 million less in debt service than what was projected, and presented to the school board, is tremendous. It’s great news for the District and our taxpayers.”
“The vision of our Trustees in maintaining an Interest and Sinking rate of .46 gave the District the capacity to bring a bond referendum with a no tax rate increase before voters,” Taylor said. “This successful bond sale has added to the excitement of what will ultimately be provided for students, thanks to our voters.”
Following the closing on the bond sale next week, the funds will be deposited into an investment account. Planning for the renovation of Wheat Middle School, the most intensive project to be funded by Bond 2021, is already underway. A general schematic of the campus renovation was presented to Trustees at their Monday school board meeting.
Members of PBK Architects have been meeting with WMS teachers and staff, to gain input and thought regarding the “transformation” of their campus, which will include the construction of 22 additional classrooms. Groundbreaking is planned to take place in October.
Bond 2021 will also provide for renovations at Smith Middle School for its future use as an intermediate campus serving grades 5-6, improvements to the interior of the Don Smith Performing Arts Center, and upgrades to technology infrastructure and campus safety and security districtwide.