GALENA PARK ISD AND TAXPAYERS WIN IN BOND REFINANCING EFFORT
Monday, July 23, 2012
FOR IMMEDIATE RELEASE
Houston, Tx – In an effort to save money, Galena Park ISD leadership decided to take advantage of current low interest rates by refinancing GPISD’s bonds this July. The public votes to allow bonds to be sold. Bonds are sold based on credit ratings, interest at the time of purchase, and a multitude of other factors. Bonds can be used for capital improvements and expansion such as: land acquisition; buildings and furnishings; and equipment.
Initially the District projected to save just over $1 million in future interest payments. However, “Galena Park ISD’s lofty AA+ and AA- underlying bond ratings, which include an upgrade by Standard and Poor’s, led [Galena Park ISD] to achieve an average interest rate for the new bonds of just 2.0%,” noted Jim Brooks, Public Finance Department Senior Vice President of Southwest Securities, Inc. This resulted in a savings of $2.3 million. “This $2.3 million interest savings and the corresponding 22.3% present value savings is one of the best refunding results we have seen in over 30 years of serving school districts in Texas as financial advisor,” Brooks added.
“This is a good day for the District and our community. I am grateful to work with an amazing group of people who are intent on being good stewards of our resources. They work very hard to ensure taxpayer dollars are spent wisely. Mr. Chaphekar, Galena Park ISD Chief Financial Officer, and our Board of Trustees just saved the people of this community $2.3 million in future interest payments,” said Dr. Angi Williams, Galena Park ISD Superintendent of Schools.
Jonathan Frey | Interim Director of Communications | firstname.lastname@example.org | 832.386.1231
Story Credits: Jonathan Frey