San Angelo ISD Refinances Bonds resulting in over $7 Million in Savings

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SAN ANGELO, Texas – 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.

To stay up-to-date on San Angelo ISD news, visit the SAISD website at www.saisd.org
and follow their Facebook page.

Courtesy: San Angelo ISD Communication Department

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