The Allen ISD Board of Trustees approved a plan on August 26 that is expected to save approximately $30 million in principal and interest costs accrued from previous bond programs. The Board approved a bond defeasance, which is the early payment of principal without penalty. The defeasance plan will take place over the course of this school year, based on the timing of interest rates.
Since 2012, Allen ISD has saved more than $139 million in principal and interest through the refinance, redemption, or defeasance of previous bond programs. With the newly approved plan by the Board, this number is expected to grow to $169 million by the end of this school year.
“For more than a decade, our Board of Trustees and staff leadership have been proactive in their approach to paying off bonds early, ultimately leading to a greater savings for our taxpayers,” said Brian Carter, Allen ISD’s Chief Financial Officer. “Allen ISD has a history of completing projects on time and on budget, and we continually strive to be efficient with our taxpayers’ dollars. Through early-payment opportunities like this, Allen ISD can take advantage of the market and interest rates to reduce our overall debt obligation, which in turn saves our community money.”
The bond defeasance will only impact previous bond programs that voters approved. Allen ISD voters have the chance to vote in the bond election on November 5th that would upgrade existing facilities, enhance safety and security across the district, and refresh and update student devices in the Empower 1:1 program.
Learn more about the 2024 Bond Program at www.allenisdbond.com.