Dripping Springs ISD will save more than $18 million due to a recent refunding (refinancing) of three existing bond series. Due to lower interest rates, by refinancing bond series that were issued in 2012, 2013 and 2014, the district is projected to save $18,055,409 over several years. An order previously approved by the board allowed the district to move forward on a refunding opportunity when conditions were favorable.
“Just as a homeowner is able to refinance a home to obtain better interest rates, we continually monitor financial conditions to identify similar opportunities to save interest on existing bonds,” said Superintendent Todd Washburn. “As responsible financial stewards of taxpayer dollars, maximizing the use of bond funds is an ongoing priority for us.”
One factor in this opportunity was the strength of the district’s underlying long-term bond rating, which was updated to “AA” by S&P Global Ratings on August 12, 2020.
Dan Wegmiller of Specialized Public Finance will provide a summary report on the refunding process to the Board of Trustees at the Sept. 28 meeting.