Midway ISD and its taxpayers are set to save more than $500,000 in interest costs after the Board of Trustees approved a defeasance resolution at its regular August meeting, enabling the district to pay off bond debt ahead of schedule.
The resolution maintains the district’s Interest & Sinking (I&S) tax rate at 24 cents while applying certain tax collections towards the early repayment of outstanding bond principal—estimated between $2.6 million and $3 million.
"Being good stewards of our finances is a top priority at Midway ISD, and this Defeasance Resolution is a clear example of that commitment," Midway ISD Assistant Superintendent of Finance Wesley Brooks said. "By paying down our debt early, we're not just saving taxpayers money on interest—we're also making sure we can keep delivering high-quality education to our students without adding extra costs for our taxpayers."
The district's financial strategy, which includes maintaining a stable I&S tax rate while reducing debt, is designed to optimize the use of taxpayer funds and ensure long-term financial sustainability.
Last year, Midway ISD reduced its I&S rate from 27 cents to 24 cents, which offset the impact of a 3-cent increase in the Maintenance & Operations (M&O) rate following a successful Voter-Approval Tax Rate Election (VATRE).
The VATRE allowed the district to receive an additional $3.75 million in state funding, which primarily went toward increasing staff and teacher compensation, maintaining academic and extracurricular programs, and sustaining safety and security staff at all campuses.
