Carroll ISD plans to sell refunding bonds, which are aimed at reducing the district’s overall debt payments.
Trustees approved the parameters of the sale during the Aug. 3 meeting.
The overview
The refunding bonds will allow CISD officials to refinance up to $15 million in debt, which will add a debt service payment for fiscal year 2026-27, said Chase Park, deputy superintendent for business and finance. The refinancing is expected to save the district $4 million in interest expenses, according to district documents.
Park said the refunding bonds will allow the district to receive around $809,000 from the state in additional state aid from an increased homestead exemption. Had CISD gone forward with a defeasance resolution, the district would not have received the additional state funds, Park added.
“The goal is to refund the debt to include a new debt service payment in fiscal year 2027 in order to capture the full amount of the state funding that we are authorized,” Park said.
This is the first time the district has pursued this strategy, district officials said. Typically, CISD has adopted a defeasance resolution, but since it does not count as a scheduled debt payment like a refunding bond would, the district would not receive the full allotment of state aid.
What’s next?
The pricing of the refunding bonds is expected to take place prior to trustees adopting the tax rate for FY 2026-27, according to district documents.
The maturity of the refunding bonds is April 15, 2027.
