SAISD Announces Tax Payers Will be Saving Over $7 MillionPress Release
SAN ANGELO, TX – Officials with the San Angelo Independent School District announced Friday that after refinancing the current bond that it will be saving tax payers over $7 million dollars.
San Angelo ISD recently refinanced a portion of its current bonded indebtedness resulting in an overall savings of $7,839,070 to district taxpayers over the remaining life of SAISD bond payments through 2034. This equates to just over $600,000 in savings per year beginning in the 2021-2022 school fiscal year. The refinancing will create a present value savings of 10.38% over the life of the bond as a result of the decrease from an interest rate of 4%-5% to a much lower interest rate of 1.571%.
Assistant Superintendent of Business Support Services Dr. George McFarland proposed district administration pursue the refinancing of a portion of its current bonded indebtedness at the July 20, 2020 SAISD Board meeting and the Board of Trustees approved. Bonded indebtedness refers to any formally executed written agreement representing a promise by a unit of government to pay to another a specified sum of money.
SAISD originally passed a bond in 2008 for facility construction projects and improvements. In 2015, SAISD was able to lower the interest rates and refinance that bond. The district has now again taken advantage of refunding a portion of these bonds, a process similar to refinancing a loan, which will allow significant district savings over the remaining life of the bond until the year 2034.
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