Page 52 - 2017 GPISD Honor Board Application

6. Provision of Financial Support

for the School System

6.2 EVALUATION EVIDENCE OF EFFICIENT BUSINESS MANAGEMENT PRACTICES

GPISD Board Trustees place great importance on the financial management of the district. As such, they
work collaboratively to be responsible financial stewards of the District’s resources. The District’s success
in this area is evidenced by the many accolades earned for efficient business management practices.

Transparency Stars Award
Previously, the District held platinum-level membership in the Texas
Comptroller Leadership Circle. In an effort to exceed transparency
standards, the District applied for and was awarded the Texas
Comptroller of Public Accounts Traditional Finances - Transparency
Stars Award for providing clear and meaningful financial information
through summaries, visualization, and downloadable data.

Bond Refunding
The Board has made every effort to refund outstanding bonds when
possible, to lower interest rates and create savings in this area. The
District is in the process of refunding $33.8 million unlimited tax
refunding bonds series 2017 to refund debt for savings. In October 2016,
$12.7 million of the Series 2007 bonds was refunded. By lowering the
average interest rate on those bonds, the District was able to save over
$2.5 million in interest cost over the remaining life of the bonds. Also in
2015, the District refunded the Series 2005, 2006, and 2007 bonds to
reduce outstanding principal by $17.6 million, decreasing future interest
payment by $17.4 million for a total savings of over $35 million through 2034.

Financial Integrity Rating System of Texas (FIRST)
TEA awarded Galena Park ISD the highest honor for financial integrity, the Superior Achievement
School FIRST Rating. FIRST ensures that school districts are accountable for sound financial
management practices and reviews whether a district achieves improved performance in financial
management to provide the maximum allocation for direct instructional purposes.

Fitch and Moody’s Rating
Galena Park ISD continues to receive positive rating outlooks from both Fitch and Moody’s
indices. Recently, the District received an AA+ Rating from Fitch, which reflects the “District’s strong
operating performance.” The District received an Aa2 Rating from Moody’s index, identifying credit
strengths of “very healthy reserves and liquidity” and “sustained trend of surplus operations.”

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