On January 20, Dallas ISD completed a competitive sale of the final $299.2 million in bonds from the 2015 voter-approved bond program. Initial projections suggested this final 2015 sale would be at a 3.75% interest rate amortized over 30 years. However, due to the district’s great credit rating and the strength of the market, the district received the lower rate of 1.64% amortized over only 24 years. The successful sale resulted in the interest cost being $93.5 million less than projected.
“This is a big win for Dallas ISD,” said the district’s Chief Business Officer Dwayne Thompson. “The savings from projections of the final 2015 bonds will provide the district the opportunity to pay off outstanding debt more quickly, saving even more interest.”
In its planning for the 2020 bond program, the district has employed the same conservative strategy used for Bond 2015. Projections for 2020 bond sales include higher estimates on interest rates and lower property value increases, indicating that the $3.7 billion bond program can be funded without raising taxes.
“Our goal is to be good stewards of public funds throughout our bond programs,” Thompson said.
The district is planning the first sale of the 2020 bond authorization in late spring to summer. Based on current market conditions and the most recent sale of 2015 bonds, Thompson said the district can anticipate realizing additional savings on the sale.