Denton ISD announced Sept. 2 it has refinanced its voter-approved bond debt, saving DISD taxpayers $6.75 million and shortening the debt lifespan by eight years.
The details
The district refinanced $15.85 million of outstanding voter-approved bond debt, which is now expected to be paid off by 2030 instead of 2038, according to a news release.
DISD monitored the municipal bond market and opted to refinance when the market conditions allowed the district to refinance at a lower interest rate. Instead of holding a debt interest rate of 4%, DISD refinanced to a 3.25% interest rate.
“We watch the market year-round so we are well positioned to act quickly when rates move in our favor,” Chief Financial Officer Jennifer Stewart said. “The key measure of a refinancing is not just the interest rate—it is whether the savings are real and whether the term stays intact. We did not push a single payment into the future. We lowered the rate, kept the schedule and took eight years off the back end of this debt, which helps our taxpayers.”
According to the release, this practice has saved DISD residents more than $339.3 million over the last 20 years. The most recent refinancing means DISD can keep a lower tax rate while continuing investments in infrastructure, technology and safety.
“Every dollar entrusted to us by our taxpayers carries an obligation,” Superintendent Susannah O’Bara said. “This refinancing means $6.75 million stays in the pockets of Denton families while our students continue to learn in safe, well-maintained facilities.”
The backstory
Denton ISD voters approved a bond package worth nearly $1.42 billion by 62% in 2023, according to the district’s website. The bond was proposed to address district growth and to provide technology upgrades and enhanced safety and security.
