The refinancing of more than $8.7 million in Chapel Hill ISD bonds will save the district and its taxpayers money.
The savings of more than $821,000 in future debt service costs will allow the district to reduce the debt service portion of its tax rate by up to 1 cent, according to a school district news release.
Superintendent Dr. Donni Cook said the district won’t set its tax rate until Aug. 28, so they have not determined the exact amount of the decrease. Still, she said, the district will drop the rate.
“We’re very excited about the opportunity to give back or take advantage of this opportunity to give back to our taxpayers,” she said.
Sharon Deason, executive director of finance, said the previous interest rate on the affected bonds was 5 percent, but the refinanced rate is between 0 and 4 percent for a true interest cost of 2.6 percent.
Chapel Hill ISD’s overall tax rate is $1.253 cents per $100 valuation. This rate comprises the maintenance and operations tax rate, which is $1.08 per $100 valuation, and the debt service tax rate, which is 17.3 cents per $100 valuation.
Chapel Hill ISD voters approved the maintenance and operations tax rate in a 2008 tax ratification election.
The refinanced bonds are from the 2007 bond election in which voters approved the funding for a new Jackson Elementary School wing, additional classroom space at Wise, Kissam, the middle school and the high school, and the construction of an athletic building.