Trustees of Arlington Independent School District last week authorized the refunding of $19.5 million of outstanding debt from a 2003 bond issue.
The resolution requires debt service savings of at least $75,000. Officials said they expect the lower rates now available will reduce costs by $100,000 a year through 2028.
The bonds currently carry interest rates ranging from 4% to 5.25%.
Trustees gave First Southwest Co. a six-month window to monitor the market to determine when to bring the refunding issue to sale.
Arlington ISD’s $516 million of outstanding debt has an underlying rating of Aa1 from Moody’s Investors Service. The debt is enhanced to triple-A with coverage by the Texas Permanent School Fund.
The state’s voters approved a $197.5 million GO bond package in November 2009.