McKINNEY (April 20, 2016) — McKinney ISD, based on higher than previously estimated property value growth from the Collin County Central Appraisal District, combined with interest savings from completed Bond Refunding (Refinancing), will be looking to reduce the tax rate by 4.5 cents instead of the previously estimated 2 cents.
In addition, McKinney ISD will be reducing the maturity of any authorized 2016 Bond Program, 16-17 fiscal year bond sales from 25 years to 20 years, enhancing an already aggressive debt payoff schedule. The majority of school districts utilize 30+ year bonds. The tax decrease factors in the proposed $220 million bond program.
McKinney ISD Chief Financial Officer Jason Bird described the financial outlook for the McKinney ISD Board of Trustees on Tuesday night at their regular Work Study meeting.
“As of the April 2016 refunding, McKinney ISD has refunded (refinanced) approximately $225,385,000 of bonds for a total savings of $31,702,588,” Bird said. “True interest savings with no maturity extension is a win for our tax payers.
“Based on continued strong property value growth and bond refunding,” Bird continued, “the latest estimates translate into the ability to reduce I&S (debt service) tax rate from 50 cents down to 45.5 cents and at the same time reduce bond maturities from 25 years down to 20 years. This combination provides an even greater reduction in the tax rate than previously estimated, while at the same time dramatically reducing interest costs.”
Bird added that issuing 20-year bonds would reduce the district’s interest expenses by approximately 23 percent compared to 25-year bonds, thereby adding additional strength to an already sound debt schedule. Under this scenario McKinney ISD will have paid off over 60 percent of total debt within the next 10 years, while at the same time lowering the tax rate.
McKinney ISD Board of Trustees President Amy Dankel welcomed the financial news. “I and my fellow McKinney ISD Board members are very pleased to have the potential opportunity to reduce taxes while maintaining such high academic and safety standards in our school system,” Dankel said. “This is an ideal scenario, which has only been made possible by solid financial planning and a strong McKinney community. The McKinney ISD Board remains committed to serving our students as we plan for the next academic year and beyond, with the understanding that strong schools benefit the entire community.”
For additional information on McKinney ISD, contact Shane Mauldin, MISD Communications Coordinator, at 469-302-4007 or firstname.lastname@example.org.
About McKinney ISD
One of the fastest growing school districts in Texas, the McKinney Independent School District currently enrolls more than 24,750 students in 20 elementary schools, five middle schools, three high schools, four alternative schools and one early childhood education school. The mission of McKinney ISD, the champion for progressive learning throughout the diverse McKinney community, is to inspire and equip all students to explore, develop and express their unique potential as innovators, critical thinkers and collaborators through challenging, engaging and diverse learning experiences in vital partnership with the community. Visit the district's website at mckinneyisd.net.