BISD receives favorable interest rates for bonds
Sunday, 08 July 2012 by Keith Bahlmann
Belton ISD received an interest rate of 3.96 percent for the sale of $60 million in bonds to finance the construction of three schools approved in the school bond election on May 12.
Jennifer Ritter Douglas, Managing Director for Specialized Public Finance, and the District's financial advisor, said that this aggressive interest rate is the lowest of any of the District's currently outstanding bonds for new construction, which have averaged an approximately 4.75 percent interest rate in the past.
She also said that because of this historically low interest rate, the tax rate to be set by the Board in August will not exceed and could be below the rate estimated during the bond election.
Randy Pittenger, President, Belton ISD Board of Trustees, said, "We are excited that we were able to take advantage of these excellent market conditions. Through diligence and good timing we achieved a rate below 4 percent which will result in savings to our taxpayers. We want to keep tax rates low and stretch our dollars as far as possible."
Also, according to Eric Haugeberg, BISD Assistant Superintendent for Finance and Operations, "This bond program is a significant value for our taxpayers who will benefit from the new school buildings and lower debt payments for many years to come."
The bond election calls for construction of three new campuses: two elementary schools and one middle school campus, allowing Belton High School to expand into the facility now occupied by Belton Middle School.
Construction will start on the first elementary school during the fall of 2012. The remaining two schools will be built the following year.