The Marble Falls ISD Board of Trustees took action during their February 15, 2016 meeting to authorize District Administration to proceed with the refinancing of a portion of the Series 2006 bonds and the remaining outstanding Series 2007A bonds. Refinancing of the bonds will lower the interest rate in order to provide interest cost savings to the Marble Falls ISD taxpayers.
“The refinancing of outstanding bonds is similar to a homeowner refinancing the original interest rate on their mortgage to reduce their house payment,” said Lisa LeMon, MFISD’s Executive Director of Finance. “This authorization represents the third phase of a refunding program that MFISD began in 2014 to achieve interest cost savings.”
The first phase (July 2014) refinanced a portion of the 2007A bonds and generated $376,267 of interest cost savings to the Marble Falls ISD taxpayers. The second phase (February 2015) refinanced a portion of the 2007A bonds and generated $1,808,334 of interest cost savings to the Marble Falls ISD taxpayers. The third phase of the program is estimated to generate an additional $3,700,000 of interest cost savings to the Marble Falls ISD taxpayers.
The Texas Education Agency is expected to provide the Permanent School Fund Guarantee for the Series 2016 Refunding Bonds. It is expected that Standard and Poor’s will assign a rating of “AAA” to the Series 2016 Refunding Bonds following receipt of the Permanent School Fund Guarantee and affirm the District’s underlying credit rating of AA-. The pricing of the Refunding Bonds could occur as early as April 19, 2016 should the interest rate market sustain a level that would allow the District to meet the established target level of interest cost savings.
“Tonight’s Board action to approve the issuance of refunding bonds serves as one more example of the District’s commitment to the wise stewardship of taxpayer dollars and proactive efforts to plan for the long-term financial health of Marble Falls ISD,” said MFISD Superintendent, Dr. Chris Allen. “The District’s leadership has and will continue to highly prioritize strong fiscal management moving forward”.
For more information about MFISD’s bond funding, projects and expenditures, click on the Bond Updates link on the District’s main web page at http://marblefallsisd.org/.
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