During the JISD Board of Trustees meeting on Nov. 16th, the district announced the results of the
refunding of the Series 2011 Bonds. Previously, on May 15th, the trustees had authorized the administration to proceed with refinancing those 2011 Bonds to lower the interest rate, pay off principal early, and to provide interest cost savings. The District locked in the lower interest rates in July and then closed on the refunding bonds on Nov. 18.
By paying off principal early and by lowering the average interest rate of 4.93% on the Series 2011 Bonds down to an average interest rate of 1.31% with this refunding, the district was able to save $14,320,088.00 in interest costs over the remaining life of the refunded bonds. The total interest cost savings allowed the district to also shorten the average duration remaining on the bonds from approximately 9 years down to 7 years.
According to Chief Financial Officer, Luke Ocker, “It was exciting to be involved in a refunding with savings of this magnitude. In addition to the refunding, the District was also able to lower the Debt Service tax rate by $0.02 this year. We are very proud to announce these savings to our district, community, and taxpayers.”
JISD Superintendent, Dr. Chad Kelly added, "We are ecstatic that our business office was able to pursue this avenue to save the district such a tremendous amount. We have had in the past, under the leadership of now retired CFO Lindy Finley, unbeatable protocols in place regarding district finances, and I fully expect to see that continue with our new CFO, Luke Ocker. Jacksonville
is not only on sound footing finance-wise, but is looked to as a leader in school finance in the state".