This article was originally published in The Examiner on Oct. 13, 2016.
By Eleanor Skelton
Staff Writer
Beaumont Independent School District closed the $132,155,000 Unlimited Tax Refunding Bonds Series 2016 transaction, effective Sept. 21.
This decision resulted in a cash flow savings to the district of $41,641,313, which is approximately $1,892,700 per year through 2038, according a statement from the district.
The district also estimates a net Present Value savings of $31,989,357 or 22.836 percent.
All of this “could reduce the future debt service tax rate for BISD taxpayers about $0.0185 through 2038.”
“We are so excited about the future and the potential savings to our taxpayers,” said Beaumont ISD Chief Financial Officer Cheryl Hernandez.
BISD bonds were sold at a lower interest rate than several other Texas ISDs posted on or near the same day.
The district believes that the better price received is a “reflection of the capital market’s confidence in the recent financial performance of the district and the stability provided by the new BISD management and advisory team.”
This comes after school administrators misappropriated funds for several years, beginning at least as early as 2013, as previously reported by The Examiner.
BISD will be refinancing additional bonds in hopes of further reducing costs to taxpayers.
Eleanor Skelton 