Weatherford ISD Prices and Sells Voter Approved Bonds: Tax Rate Impact is 2 Pennies Less than Original Projections

On June 25, 2015, Weatherford ISD priced and sold all of the bonds from the $74,900,000 May 2015 voter approved authorization. Due to favorable interest rate market conditions and recent tax base growth, the Interest and Sinking Fund (I&S) tax rate will be $0.02 lower than original projections: $0.2999 instead of the original $0.3200 projection.

The true interest cost rate on the 30 year fixed rate bond issue was 4.0678%. $18,985,000 of principal associated with shorter life projects/assets will be paid off within the first 15 years of the bond issue. The bond issue structure does not include any capital appreciation bonds (CABs) or variable rate bonds. In summary, the low interest rate achieved on the bond issue combined with recent growth in the District’s tax base, Weatherford ISD’s current bond repayment plan is more favorable than the projection that was approved by the voters in May.

Dr. Jeffrey Hanks, WISD Superintendent, stated “We are very pleased with the results of the bond pricing. WISD students, parents, faculty and the whole community will benefit from the much needed projects included in this bond package AND the tax rate impact of the bond issuance is $0.02 less than the original projections that were communicated to WISD voters”

At the August 20, 2015 Special Session of the Weatherford ISD Board of Trustees the school board adopted the budget for 2015-2016 then set the tax rate and adopted an Ordinance so stating. The Board of Trustees adopted the tax rate of $1.17 for Maintenance and Operations and $0.299 for Interest and Sinking for a total combined tax rate of 1.469 for 2015-2016.

Published August 20, 2015 Print