By Michael V. Hannigan
The Eustace ISD school board agreed to refinance the school district’s bonds during a special meeting Tuesday night. The action could potentially save the district $1.9 million in debt service, according to Superintendent Dr. Coy Holcombe. You also might want to research some if you’re wanting to refinance so you can try and save some money. Look at the different refinance mortgage rates offered.
The refinancing should not change the district’s tax rate.
In his blog “The Yard,” Holcombe wrote:
“In this scenario, the district would use $450,000 of its I & S fund balance as a cash contribution to pay down on the balance of the bonds and do an advance refund based on current interest rates. In this case, the potential savings to the district would be almost $1,900,000 in debt service. Further, the refunded bonds would be paid off three years earlier than the original maturity date. The overall bond payment for the district will not change dramatically from what it is paying now (about $1,070,000). Since the bond payment will not change much, the expected I & S rate will not be affected, either. The big difference is the fact that the bonds will be paid off early.”