The Clear Creek School Board has approved a bond financing plan that may save taxpayers upwards of $51 million or two cents less on the tax rate.
In May, the community authorized $367 million in bonds to rebuild aging schools, accommodate enrollment growth and provide additional facilities for co-curricular and extracurricular programs. Based on the initial bond financing plan, taxpayers would have seen a 13 cent increase on the tax rate over a three-year period.
However, at the monthly board meeting, the district’s bond advisor presented a variable-rate proposal which would allow CCISD to finance upwards of $200 million of the $367 million in short-term loans with an interest rate of less than one percent versus the original $367 million with long-term loans at a fixed interest rate of 4.68 percent.
“This is an opportunity to save taxpayers a significant amount of money down the road, draw down our debt at a faster rate than projected, and ultimately still achieve the goals set forward by the community in order to meet student needs for years to come,” said School Board President Ann Hammond.
CCISD is consistently watching the interest market and refinances debt at lower rates no different than people do on their own homes. Over the last 10 years, these efforts have led to a $35.8 million in interest savings of previous bonds.
Also at that meeting, the board:
- Received notification the district received the “Superior Achievement” ranking under the Financial Integrity Rating System of Texas for the 11th consecutive year;
- Congratulated CCISD Athletic Director Bill Daws on being elected president of the Texas High School Athletic Directors Association, which covers more than 1,000 school districts;
- Honored the Clear Creek High Wind Ensemble, which has been invited to perform at the Midwest Clinic In Chicago in December at the largest musical convention in the world.