Bond Savings Grow for Clear Creek ISD

Bond Savings Grow for Clear Creek ISD
Posted on 03/25/2015

Office of Communications
2425 East Main Street
League City, Texas 77573 

Contact: Janice Scott, Assistant Director
Office of Communications
(281) 284-0020 or jwscott@ccisd.net

March 25, 2015

Bond Savings Grow for Clear Creek ISD

League City, Texas – While Clear Creek ISD was officially on spring break the week of March 16-20, it also marks the week that bond savings for the District continued to grow as CCISD was able to sell the remaining $67 million in voter approved bonds from the May 2013 bond authorization.

As a part of this sale, the District also refinanced $126 million in existing bonds to secure lower interest rates and produce long term savings of more than $16.4 million on its debt service payments.  Interest rates, while slightly higher than the record lows experienced earlier this year, still settled in at 3.451425% once the sale was complete.

When voters went to the polls in May 2013, seven out of ten voters approved a tax rate increase of 11.25 cents to fund $367 million in bond projects.  As a result of favorable interest rates and conservative financial planning, the maximum tax rate increase is now projected to be 4.0 cents, which is 7.25 cents less than authorized by voters. “This 7.25 cent savings on the tax rate represents a substantial positive impact for the taxpayers of Clear Creek ISD,” said Paul McLarty, Deputy Superintendent of Business and Support Services.

CCISD has followed interest rates closely over the years to find opportunities to refinance existing debt at lower interest rates.  This is no different than homeowners who look for an opportunity to refinance their homes and realize long term savings on their mortgage payment. The District has saved taxpayers $53.4 million in long term bond interest payments by refinancing higher interest bonds over the last 12 and a half years, including the $16.4 million in interest rate savings from this most recent refinancing decision.

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