Katy ISD board of trustees members voted to approve a resolution to defease two outstanding bond debts June 22. The move enables the district to pay down a portion of its bond debt, similarly to how a mortgage debt is paid off early, said Christopher J. Smith, KISD chief financial officer.
The district will pay approximately $12 million of outstanding debt from the 2007-A unlimited tax school building bond and the 2007-C limited tax refunding bond. The bonds were approved by voters during the 2006 election and issued in March and April 2007, respectively. The bonds were originally set to mature between 2027 and 2037.
“Over the last two fiscal years we’ve been able to defease about $19 million [in bond debt], saving taxpayers a little over $15 million in interest,” Smith said.
The current defeasance will result in roughly $6.5 million in interest savings that would have otherwise been paid by taxpayers over the course of repayment, Smith said.
