Willis ISD board votes to authorize bond refunding order, sets $64 million parameter
Summary
Trustees approved a bond refunding order that sets parameters up to $64,025,000 to refund earlier bonds; staff said about $30 million currently makes financial sense and could save approximately $1.6 million in interest.
The Willis ISD Board of Trustees voted 7-0 on Sept. 10 to adopt a bond refunding order that establishes a maximum authorization of $64,025,000 to refund previously issued bonds, the district said.
A district finance staff member told the board the order would enable the district to refund bonds from the 2015–2017 series and take advantage of lower market rates without extending maturities or adding principal. "We are not extending any debt beyond current maturities. We are not adding additional debt," the presenter said.
The presenter said roughly $30 million of the amount under the order currently made financial sense to refund and would net an estimated $1.6 million in interest savings. The district also said it would continue to monitor markets and could issue additional refundings under the order later in the year if interest rates move lower.
Board member Parsons moved to approve the refunding authorization; Miss Strayer seconded. The motion carried 7-0.
The board's action sets a parameter-based authorization; staff said final decisions about the amount and timing of specific refundings will be made later based on market conditions. The district plans to use the order to reduce future interest costs and preserve long-term debt capacity while maintaining existing payment schedules.
