Homeowners will often refinance their mortgages to obtain a lower interest rate. The Dallas Independent School District took the concept to a new level, netting $29 million in savings by refinancing two sets of bonds.
On Jan. 8, the district refinanced bonds issued in 2006 and 2008 worth more than $234 million that were issued at a higher interest rate. Due to Dallas ISD’s district’s strong credit rating and increasing financial strength, the refinancing resulted in a lower interest cost that resulted in gross savings of $41 million and net present value savings of $29 million, or 12.1 percent in net present value savings.
“The proactive and thoughtful steps taken by our financial team have once again paid off,” said Superintendent Mike Miles. “By refinancing this debt, we are able to protect additional funds that can be used to support student achievement. The district remains in strong financial condition and actions like this continue to support that position.”
The new windfall is one more in a series of fiscal victories for Dallas ISD during the 2014-2015 school year.
Dallas ISD closed the 2013-14 school year with a record $342 million fund balance, and earned its eighth consecutive unqualified opinion from an external audit. In addition, Moody’s Investors Service has assigned Dallas ISD a bond rating of Aa1 for the second year in a row.
Dallas ISD’s financial operations have received several noteworthy honors during the past year. The district received a Superior Achievement rating from the Financial Integrity Rating System of Texas (School FIRST), a certificate of Achievement for Excellence in Financial Reporting and the Distinguished Budget Presentation Award from the Government Finance Officers Association and a Certificate of Excellence in Financial Reporting from the Association of School Business Officials.
