The Sulphur Springs Union School District successfully refinanced a portion of its general obligation bonds this week.

A bond refinancing transaction is very similar to a homeowner refinancing their mortgage to avail themselves of lower interest rates and reduce their mortgage payments.

This transaction will save local taxpayers over $3.1 million by lowering the property taxes required to repay the bonds over time. 

“We greatly value the support our schools receive from our community, and we are happy that this refinancing will save our taxpayers money,” said Superintendent Kawaguchi. 

While interest rates have generally been rising over the past few years, there have been periodic dips in rates, especially for high credit quality securities such as the District’s bonds.

The Board’s decisive action to authorize its staff and finance team to complete the transaction at their August 27, 2025 meeting ena4 the District to enter the market at an opportune time when rates had dropped, and lock in a True Interest Cost of 3.4 percent.

The District’s bonds were rated in the “AA” category by both Moody’s and S&P Global Ratings. 

These ratings reflect the desirability and strength of the community, as well as the Board’s good financial management practices. 

Moody’s recently upgraded the

District’s credit rating in recognition of the work the Board and staff are doing to maintain a good financial position despite the volatility in the economy.

Due to the desirability of high credit quality bonds during times of economic uncertainty, the investor demand for District’s bonds was almost three times greater than the amount available to sell.

This excess demand helped the finance team further improve savings during the bond order period on the day of the bond sale.

Board President Denis DeFigueiredo said, “The Board’s action reflects our commitment to look out for our taxpayers’ interests. We are pleased to do right by the taxpayers and to have an opportunity to save our community money, as we have done in the past.”

Ed. Note: The above information was provided by the Sulphur Springs Union School District. 

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