Bond Refunding Saves Klein ISD Taxpayers Nearly $48 Million
Klein ISD continues to take advantage of historically low interest rates through refunding efforts of existing bonds generating a savings of nearly $48 million for taxpayers.
These bond refundings come from the 2008 Bond approved by voters.
“I’m so grateful for the way our community supports our building programs, which have allowed our district to continue our tradition of excellence and innovation by improving facilities, technology access, and safety and security efforts,” Klein ISD Superintendent Dr. Jenny McGown said. “And I’m thrilled that with thoughtful fiscal management we are providing another cost-savings opportunity for our taxpayers.”
Recent refundings have used a competitive sales approach and generated strong interest from investors which resulted in significant reductions in financing cost.
“We are very pleased with the results of these transactions and are excited for the opportunity to reduce costs for our taxpayers,” Klein ISD Chief Financial Officer Dan Schaefer said. “The District’s high credit ratings are generated by Klein ISD’s strong financial position through active financial management which yielded incredibly low interest rates.”
Thanks to our Financial Services team for their continued efforts to maintain a high level of financial integrity while focusing on cost-saving measures for our taxpayers.
In April 2020, Klein ISD took bids on $112,095,000 in bonds which resulted in interest cost savings of $21.3 million (13%), or approximately $1.06 million a year for 20 years.
Prior to the refunding, the bonds required $160.1 million in principal and interest payments; however, after the refunding, payments were reduced to $138.8 million. The true interest cost for the refunded bonds is 2.128%.
In October 2020, Klein ISD took bids on $71,215,000 in bonds which will result in interest cost savings of nearly $26.55 million (23%), or approximately $1.32 million a year for 20 years.
Prior to the refunding, the bonds required $113.6 million in principal and interest payments; however, after the refunding, payments were reduced to $87.05 million. The true interest cost for the refunded bonds is 1.903%.
Best Public Schools in Texas
Klein ISD has an established 83-year history of excellence and innovation in education with unique pathways for EVERY student in our care to ensure learners are college, career, military, and life ready. With recognition for STEM, athletics, fine arts, and academics from highly-esteemed organizations, it is clear that Our Shared Vision of every student entering with a promise and exiting with a purpose is a reality for EVERY student who walks through our doors. https://kleinisd.net/results
About Klein ISD
Klein ISD is a school district in Klein, Texas located in northwestern Harris County. The district spans approximately 87.5 square miles and serves more than 53,000 students in 33 elementary schools, 10 intermediate campuses, one high school program of choice, and 5 high schools.
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