Weatherford ISD Thankful for Refunding Bond Issue

Saves District Taxpayers $7,600,659.

On November 19, 2015, Weatherford ISD finalized the terms for a $23.2 million refunding/refinancing of a portion of the District’s bonds from the 1999 bond authorization that resulted in a savings of $7.6 million to the District and its taxpayers. The extremely favorable interest rate environment allowed for the savings to be considerably higher than initial projections and expectations. The true interest cost rate on the 17 year fixed rate refunding bond issue was 3.12% while the bonds that were refunded had an average interest rate of 4.69%.

Initially the District was unable to move forward with the refunding due to the State Attorney General’s interpretation of a provision within the new House Bill 114 law. In an effort to ensure that the District would not miss the opportunity to save millions of dollars for its taxpayers, the Weatherford ISD Board of Trustees formally approved an action item that would allow the Administration to enter into a Bond Validation process that would have challenged the Attorney General’s initial interpretation of the provision within HB 114. Shortly after the Board’s action, the Attorney General’s office changed its interpretation and the refunding was able to be successfully executed by the Administration and its financing team.

Dr. Jeffrey Hanks, WISD Superintendent of Schools, stated “While there was an unexpected hurdle we had to clear in order to complete the refunding, we are very thankful for the final results. I am pleased to be able to say that we were able to save Weatherford ISD taxpayers $7.6 million. I would also like to say that I believe our Board’s willingness to take formal action to challenge the Attorney General’s original interpretation of HB 114 for the benefit of our taxpayers is the main reason we were able to complete the refunding and realize this savings. I have no doubt that other districts throughout the State in similar circumstances will now be able to refund their bond issues for savings as a result of the WISD Board’s actions and efforts. We are also thankful for the assistance that State Representative Phil King and his office provided to this issue.”

Published November 23, 2015 Print