The 84th Legislature passed HB 1378 to increase the transparency of local government debt. As a result, the Liberty Hill Independent School District (Liberty Hill ISD) must annually compile their debt obligation data from the preceding fiscal year and post the information on the District’s web site. Liberty Hill ISD maintains a conservative approach in the management of its debt and has implemented strategies to effectively manage the impact of debt. For a fast-growing district like Liberty Hill ISD, the District balances the need for additional facilities for a growing student population, as well as, maintaining our existing investment in facilities and equipment. The District employs the following practices:
Long-Term Planning - Although facing annual fast enrollment growth, Liberty Hill ISD makes decisions to continue to provide a high quality education to our students while not over-burdening taxpayers in its long-term planning of facilities. When planning for a bond sale, District officials work with the District’s bond financial advisor. The continued use of these strategies will be necessary as the District continues to grow.
Rapid Repayment of Debt - While state law allows the financing of debt over a maximum period of 40 years, the maximum maturity on debt issued by Liberty Hill ISD is 29 years.
Bond Refundings - The District considers accelerated retirement and restructuring of its outstanding debt when financially advantageous or beneficial. Bond refundings are considered in order to achieve interest cost savings or to remove or change burdensome bond covenants or restructure the stream of debt service payment.
Local Entity Debt - 2019 Debt Transparency Report