Aubrey ISD Refinances Bonds, Saving Taxpayers $1.7 Million
The Aubrey Independent School District refinanced $5.6 million of the Series 2011 Bonds to a lower interest rate in early January, achieving a total savings of $1.7 million dollars for taxpayers.
“The Aubrey ISD Board of Trustees has a long history of excellent conservative financial management,” Aubrey ISD Superintendent Dr. David Belding said. “The Board and district leadership with the assistance of BOK, the financial advisors, aggressively seeks opportunities to refinance the District’s bonds to achieve savings for taxpayers.
I am pleased that we identified bonds that were eligible to be refinanced and pursued the right timing in order to achieve such strong savings. We are focused on being excellent stewards of the resources our community provides for us and to ensure our children are receiving a world class education.”
Aubrey ISD locked in a true interest rate of 1.50% with its Series 2021 Bond to achieve a direct savings of $1.7 million through the maturity of the bond. The new maturity date is the same as the Series 2011 Bonds that were refinanced.
At the October 2020 Aubrey ISD regular board meeting, the board of trustees adopted a “Parameters Bond Order” authorizing the sale of the Series 2021 Refunding Bonds if certain parameters were met. Due to favorable bond market conditions, each parameter was met in January of 2021, and the interest rate on the District’s bonds was successfully reduced from 3.81% to 1.50%, netting an actual savings of $1,777,792.
Through refunding and refinancing of bonds, Aubrey ISD has generated a collective savings of $10,380,070 for District taxpayers since 2007.
Aubrey ISD earned the state’s highest fiscal accountability rating (FIRST) from the Texas Education Agency for the 18th straight year in October of 2020.