2017 Bond Refunding Saves Taxpayers $6.2 Million

Magnolia ISD has been fiscally responsible through the refunding of 3 different bond series since 2009. Combined with the projected savings of the 2017 bond refunding, the result is a total saving of $15 million to our taxpayers.

Bond refunding allows the district to exchange its higher-interest debt for that of a lower rate. The positive financial ratings of Magnolia ISD has allowed the district to receive lower interest rates available for all bond financing.

In November 2015, the community demonstrated their support of the District with the passing of the $92 million bond. Being fiscally responsible administrators to our taxpayers, Magnolia ISD took an aggressive approach with the recent bond by shortening the payoff schedule from 30 years to 25 years, saving an estimated $13 million in interest.

"Our school board and administration are committed to being stewards of our taxpayer dollars while still providing safe, quality learning facilities," said Dr. Erich Morris, assistant superintendent of operations. "We will continue to take a proactive approach to successfully manage the district’s debt and finances, and conduct economical and efficient operations.”

The following table depicts the refunding bond series and how much total debt it has saved the district.

Original Issuance Year     Refunded Year    Interest Savings
1999                                   2009                      $1,234,020
2004                                   2012                      $1,718,874
2005                                   2013                      $5,884,838
2007                                   2017                      $6,257,104*
                                                              Total $15,094,836