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Bond Refinance May Lower Property Taxes
John Blackburn from Live Oak Financial addressed the CISD school board at the March meeting. He presented that, due to recent state legislation, property owners may see lower taxes this year. Additionally, property owners over the age of 65 may see the lowest property taxes ever.
At the last bond approval, the district decided to sell 50% of the bonds and hold the other 50% for sale at a later date. With the collections from Mockingbird Solar, the current progress of construction and better loan rates available, the district could see some significant money-saving benefits.
Under consideration are: Refinancing the 2016 bonds at a better rate – saving 3% in interest, taking a 15-year loan on the second round of bonds instead of 25 years, and making annual assessments as to what to target for earlier pay off. There will be no increase in school tax for property owners which is currently 42 cents.
The board approved the following:
- Submit application to the Permanent School Fund (PSF) Bond Guarantee Program (BGP) by March 31, 2026
- April 13 submit documents to start sale process
- May 14 sign documents to authorize the sale
- June 10 Close sale and receive funds. The funds should arrive in the construction account before the July building schedule funds.
At the last bond approval, the district decided to sell 50% of the bonds and hold the other 50% for sale at a later date. With the collections from Mockingbird Solar, the current progress of construction and better loan rates available, the district could see some significant money-saving benefits.
Under consideration are: Refinancing the 2016 bonds at a better rate – saving 3% in interest, taking a 15-year loan on the second round of bonds instead of 25 years, and making annual assessments as to what to target for earlier pay off. There will be no increase in school tax for property owners which is currently 42 cents.
The board approved the following:
- Submit application to the Permanent School Fund (PSF) Bond Guarantee Program (BGP) by March 31, 2026
- April 13 submit documents to start sale process
- May 14 sign documents to authorize the sale
- June 10 Close sale and receive funds. The funds should arrive in the construction account before the July building schedule funds.