By Judy Sheridan
Aledo ISD taxpayers got a bigger-than-bargained for savings last week when the district pulled the trigger on refinancing some $26 million in bonds.
Bigger than the $2.5 million predicted by the district’s financial advisers in November.
Even bigger than the $4.2 million estimated in December, as interest rates continued to drop, advisers added more bonds to the sale and trustees gave the go-ahead, contingent on optimum market conditions.
The actual net savings to the district’s taxpayers as of April of 2013? It’s $4.5 million, Aledo ISD CFO Earl Husfeld said.
“It amounts to $240,000 per year of savings for our taxpayers,” he said. “That’s close to one penny on the tax rate.”
For the $8.9 million in tax-exempt bank qualified bonds, the interest rate went from 5.03 percent to 2.33, for a savings of $2.3 million. For the $17 million in taxable bonds added later, the new interest rate is 2.41 percent, down from 4.89, for a savings of $2.3 million.
The savings will be realized over the life of the bonds — instead of in the short-term — to take advantage of the greatest savings and help the district manage its tax rate over the 20-year period, Bill Gumbert, of BOSC, Inc., told trustees in December.
Credit rating upgraded
As the district completed the refinancing, Standard & Poor’s Rating Services raised its issuer credit rating from “A+” to “AA-” on the district’s outstanding bonds.
The new rating, Husfeld said, is due primarily to Standard & Poor’s view of the district’s significantly strengthened financial position.
“This is extremely positive news for the district,” he said. “It underscores the financial strength of our district through its historically conservative financial management style. It also happened in spite of the state reducing public school funding.
“Generally speaking, there are not a lot of school districts our size that have this “AA-” rating. The districts that do most often have many more students and a larger property tax base.”
The better credit rating will allow the district to secure a lower interest rate when it sells bonds in the future, Husfeld said.
Standard & Poor's raises district's credit rating to AA-
By Judy Sheridan
- Aledo ExtrA
Candidates have filed for city, school board elections
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On the Aledo ISD school board incumbents David Davis, in Place 6, and Hoyt Harris, in Place 7, have both filed for re-election, each drawing one or more opponents. Farida Goderya has filed for Place 6, opposite Davis, and Riley Morrison and Debra Rogers have filed for Place 7, opposite Harris.
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WILLOW PARK – Peppered with anecdotes from his stellar baseball career, former Texas Rangers catcher Jim Sundberg gave witness to his Christian faith and told how it changed his life before a crowd of about 200 at the recent annual Trinity Christian Academy dinner and fundraiser.
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Aledo ISD could save up to $2 million
Expecting to save close to $2 million, Aledo ISD trustees recently voted to let district staff pull the trigger on a bank-qualified refunding of some of the district’s outstanding bonds once market conditions are optimum.
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Parker County Sheriff's Report Feb. 27-March 2
Burglary of a vehicle
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EXTENSION NEWS: Getting more zzzs could help you lose some lbs.
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