News release
The Sulphur Springs Union School District has successfully refinanced a portion of its general obligation bonds, a transaction that the district expects to save taxpayers more than $3.1 million, according to a news release from the district.
A bond refinancing transaction is very similar to a homeowner refinancing a mortgage to obtain lower interest rates and reduce mortgage payments, the release said, adding that this transaction will save local taxpayers over $3.1 million by lowering the property taxes required to repay the bonds over time.
“We greatly value the support our schools receive from our community, and we are happy that this refinancing will save our taxpayers money,” Superintendent Catherine Kawaguchi said in the release.
While interest rates have generally been rising over the past few years, there have been periodic dips in rates, especially for high-credit-quality securities such as the district’s bonds, the release said.
The governing board’s action to authorize its staff and finance team to complete the transaction at the Aug. 27 school board meeting enabled the district to enter the market at an opportune time when rates had dropped, and lock in a True Interest Cost of 3.4%, the release said.
The district’s bonds were rated in the “AA” category by both Moody’s and S&P Global Ratings, and these ratings reflect the desirability and strength of the community, as well as the board’s good financial management practices, according to the release.
Moody’s recently upgraded the district’s credit rating.
“The board’s action reflects our commitment to look out for our taxpayers’ interests,” board President Denis DeFigueiredo said in the release. “We are pleased to do right by the taxpayers and to have an opportunity to save our community money, as we have done in the past.”
