Refund Program Saves District Millions on Previously Issued Bonds
Duncanville Independent School District recently lowered the interest rate on previously issued bonds to save taxpayers $12.4 million. The Refunding Program, which is a collaboration between the Finance and Operations Department and BOSC, the district’s financial advisors, reviews cost-saving opportunities. During the past three years, the Refunding Program has taken advantage of favorable bond market conditions and saved the school district a total of $20.8 million.
“When our residents, parents, and business owners approve bond packages, they expect Duncanville ISD administrators to reliably manage those funds,” said Chief Finance and Operations Officer Ronald Kuehler. “For us, that means being financially conservative while taking advantage of cost-saving opportunities when they are available.”
This process began with direction from the Duncanville ISD Board of Trustees. In October, the trustees authorized the sale of certain bonds as long as specific parameters were met that were beneficial to the school district.
Last week with assistance from the district’s financial advisors, the Finance and Operations Department refinanced the interest rate on the previously issued bonds. Doing so reduced the interest rate from 4.71% to 3.26%, providing a savings of $12,422,734. The refund does not extend the length of the bonds.
“The thoughtful foresight of our Board of Trustees and detailed planning by the Finance and Operations Department reveals the high level of importance this administration places on fiscal responsibility,” said Duncanville ISD Interim Superintendent Dr. Deborah Cron. “This cost savings will help to provide more dollars to support our teachers and students.”