Bullard: School district to save $1M

Published on Thursday, 12 June 2014 22:45 - Written by Faith Harper fharper@tylerpaper.com

Bullard ISD expects to save more than a $1 million after reissuing bonds.

Bullard’s board of trustees approved reissuing a portion of its 2007 series bonds to get a better rate May 19, and they were sold in a public offering on June 10.

The original $25 million bond was used to build the current elementary school, said Gloria West, business manager for the district.

Ms. West said not all of the bonds within the series were eligible for reissuing, but about $8.8 million qualified.

The 5.1 percent interest rate of the qualifying $8.8 million was lowered down to an average interest rate of 3.04 percent, allowing the district to save $1,115,655 in interest cost over the remaining life of the bonds, which will be paid off in 2030.

Ms. West said the school will save $68,011 annually, but taxpayers will not see a decrease in their bills.

The savings will decrease the amount of funds Bullard moves from its general fund to pay its debts, freeing up additional money for instruction, teachers and general improvements.