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Fort Bend Independent School DistrictNEWS RELEASE |
** FOR IMMEDIATE RELEASE **
Standard and Poor’s and Fitch affirm Fort Bend ISD's “AA” Bond Rating - District saves over $12.8 million in future interest cost
FORT BEND ISD ― Both Standard and Poor’s and Fitch Ratings have affirmed Fort Bend ISD’s strong “AA” bond rating. Fitch commented in its recent report, “effective for fiscal 2011, the district has declared financial exigency in order to terminate contracted employees (as required by the Texas Education Agency). This action was necessary to allow the school district to eliminate about 470 positions to close an estimated $22 million budget gap.” Historically, the district has proactively and prudently managed resources to sustain a healthy financial profile.
Jim Brooks, representing Southwest Securities, Inc., the district’s financial advisor, said, “The District was able to enter the market to refund approximately $174 million in outstanding bonds from the Series 2010 bonds across the country to municipal bond investors. The results of our efforts were the bonds have been sold at an average rate of just 3.57 percent, which is one of the lowest, if not the lowest, rates we have seen for school bonds in many, many years.”
The better news is this low rate will help save the taxpayers of Fort Bend ISD over $12.8 million in future interest cost over the next 18 years. The 3.57 percent average rate is by far the lowest rate of all the new bond sales the District has successfully accomplished with the bond programs approved by the voters in 2003 and 2007.
“Affirming the District’s strong ‘AA’ ratings from both Standard and Poor’s and Fitch Ratings, with stable outlooks, speaks well for the work of Tracy Hoke, chief financial officer; Dr. Jenney, superintendent, and the FBISD Board of Trustees, to have balanced the 2010-2011 Operating Budget and maintained the general fund balance as set forth in the District’s Fiscal and Debt policy,” said Brooks.
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