At a special board meeting July 16, Kilgore ISD school board trustees, along with Superintendent Dr. Andy Baker, gave their approval to a measure predicted to save the district more than $8 million in interest.
The measure will “refund” district bonds which were used, in part, for the construction of new primary and middle school campuses in 2011.
“Total savings to the KISD community was $8.6 million dollars,” said KISD Superintendent Dr. Andy Baker Friday in an email.
“KISD Chief Financial Officer Revard Pfeffer had been tracking this school bond refunding opportunity for about a year and a half. Then, early last month, the Kilgore ISD School Board participated in a budget workshop where they learned from the district’s Financial Advisor that the ‘refunding opportunity’ that Mr. Pfeffer knew was approaching sometime in the coming school year might actually be available now, or at least very soon.”
Baker said the board acted quickly to prepare for the upcoming potential financial opportunity.
“In an effort to be ready to take advantage of the best refunding market whenever it might become available, at the June 22 school board meeting, the Board of Trustees gave the Superintendent of Schools the authority to approve the forward delivery of KISD 2011 series bonds and establish the parameters of their refunding in order to take advantage of better interest rates. The bonds that have since been refunded were originally approved by the Bulldog community voters back in 2011. These bonds were used to build Kilgore Middle School, Kilgore Primary School, and to renovate portions of the Intermediate Campus and Chandler Elementary School.”
The superintendent explained the refunding process for the bonds will allow the district to place itself in an advantageous position moving into the future, as the debt is repaid in coming years.
“The forward delivery of these bonds, or “refunding,” is similar to what a local homeowner might do when they look to refinance their home mortgage.
“KISD simply took advantage of a bond refunding opportunity at a time when the market was best.
By doing this now, the Kilgore ISD School Board saved our community $8.6 million dollars in bond interest and early principal payoff over the remaining 27-year life of the debt,” he said.