The Windthorst ISD school board voted to begin the process of refinancing its series 2011 bonds during its meeting Monday, Sept. 14.
District Financial Advisor Craig Cunningham, with D A Davidson, presented the bond refinancing option to the board. He said the 2011 bond was a refinancing of the district’s 2002 school building bonds.
“We will not extend the maturity of the bonds,” Cunningham said. “The bonds would still mature in 2031 which is the original maturity date.”
He said the district is currently paying about an average of 4% interest on its bonds, but he believes the new interest rate can be approximately 2.22% under current market conditions.
“We are projecting it could generate about $128,000 (or 7.23%) of gross debt service savings by refinancing the bonds,” Cunningham said. “(…) It’s also important to note that those savings are net of all costs and expenses necessary to go issue the new bonds.”
The financial advisor said he believes they can complete the sale of the refinancing of bonds in the next six weeks and close on the refinancing in the next nine weeks. Cunningham said the risk is interest rates rising in the next few weeks while getting approved for the refinancing which he did not believe was a large risk.
The board adopted a parameter bond resolution stating Superintendent Lonnie Hise can execute
the documents necessary to refinance the bonds, but only if the refinancing will generate at least 3% in net present value savings. Cunningham said with the exception of the fee of the rating agency in the estimated amount of $10,000, the district would not be required to pay the fees or expenses of any other parties of the refinancing unless it is completed.
The school board approved the district’s annual district improvement and campus improvement plans with minimal changes.
The board approved resolution #172 to recognize Archer County 4-H as eligible for extracurricular status.
An update on the ESL program was given and it was said no students graduated from the program last year due to the lack of STAAR testing to use as a benchmark. The number of students in the program rose from 28 to 34 this year.