1 Dec 2008
District to Sell Bonds at AAA Rating; Decision Saves Millions for Taxpayers
DALLAS–Dallas taxpayers received good news this morning that the Texas Education Agency has reaffirmed its decision to allow the Dallas Independent School District to guarantee its school construction bonds to be sold through the Permanent School Fund.
The decision means that the district will receive more favorable interest rates consistent with a AAA rating when it begins selling $400 million in bonds tomorrow.
Steve Korby, the district's Executive Director-Financial Services, said the guaranteed backing of the Permanent School Fund overrides the impact of a rating reduction by various rating services from AA to AA-.
"The backing of the Permanent School Fund is the one that counts the most for taxpayers because it will result in a lower interest rate when the bonds are sold," said Korby. "Over a 25 year period, this will mean the district will need to levy millions of dollars less from taxpayers to fund various school construction projects."
The 2008 Bond program will pay for the construction of 15 new schools, additions to 12 schools and renovations to more than 200 schools in Dallas ISD.