Editor's note: The 1998 bond debt was paid off in 2024, rather than the estimated 2028 timeline. Boerne ISD staff said the 2002 bond was paid off in February.
In early February, Boerne ISD crossed a milestone: paying off $45.6 million on the 2022 bond, years ahead of schedule, district staff said.
The $165.64 million bond authorized by voters funded the construction of Viola Wilson Elementary School, additions to both district high schools, library renovations at four elementary schools, the construction of an Aquatic Learning Center and other district improvements. Staff said 32 total projects have been completed over the past three years.
Marking a milestone
According to a Feb. 17 news release, the district has been able to structure repayments and refinancings to save significant taxpayer dollars on all bonds, not just the 2022 bond projects.
Since the 2016 bond election, the district has saved more than $85 million in interest, paying back 30-year loans at a pace of an average 25-year loan or 20-year loan in some instances, staff said.
“The district’s strategic approach to managing bond debt is saving millions of dollars in taxpayer money. Our community deserves this kind of responsible fiscal management," board President Kristi Schmidt said in the release. “The district’s business office has received many awards for their ethical, conservative handling of the money entrusted to us by our community. We’re grateful for the trust our community puts in the school district – it’s a responsibility all of us take very seriously.”
How we got here
Director of Communications Maggie Dominguez said the district was scheduled to pay off 1998 bond debt in 2028, but paid the debt off in 2024. The district is paid down debt from the 2002 bond election in February while making aggressive payments toward the more recent bonds.
Dominguez explained that district staff structures the debt to be callable within a shorter time, meaning the district can refinance, refund, defease or take other action faster than with previous bond sales. In older propositions, the bonds would become callable after around 10 years of issuance, while the updated debt structure allows them to be callable in one to four years.
“This creates a callable ‘ladder,’” Dominguez said. “With a well-structured ladder, we can take action each year to see what we have available in the [interest and sinking] fund to pay debt down faster. Our structuring of that debt to become callable sooner has also decreased interest payments by millions so far.”
Another step district staff took was to structure the 2022 bonds so that the district borrowed money when it was ready to spend it, rather than taking the entire issuance in one tranche. Dominguez said this method decreases interest payments significantly.
