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Board approves $15.7 million guaranteed maximum price for campus renovations and authorizes bond sale and refunding
Summary
Trustees approved a guaranteed maximum price (GMP) of $15,742,601.13 for renovations at six campuses, authorized a $445 million parameter order for the next 2023 bond sale and approved a refunding authorization to pursue up to roughly $260 million in refundings after staff outlined projected savings.
Conroe ISD trustees on Sept. 16 approved a construction guaranteed maximum price amendment for a multi‑campus renovation project and authorized both a refunding parameter and a new‑money bond sale tied to the district’s 2023 bond program.
Facilities staff and the district’s construction manager at risk presented a request to approve a Guaranteed Maximum Price (GMP) amendment for renovations at six campuses — Wilkinson, Patterson, Bosman, Stewart, Cryer and Grangerland. The board voted 7–0 to approve a GMP of $15,742,601.13; the total bond budget for the project is $17,015,004.97. The district said an additional $1,500,000 from the general fund is allocated specifically for athletic facility improvements related to the work.
On finance, the board heard from the district’s financial advisor, John Robach of BOK Financial Securities, about a refunding opportunity. Robach recommended a refunding that could save the district roughly $10.8 million in nominal interest‑cost savings (about a 5.3% present‑value savings) by refunding older callable issues in the 2016 bond series. Staff asked for board authorization of a parameter order allowing refunding up to an amount discussed at the meeting (staff referenced a ceiling in the neighborhood of $260 million) and authorized proceeding with the Permanent School Fund guarantee application and a planned sale schedule.
Trustees also authorized the third sale from the 2023 authorization, asking for parameters not to exceed $445,000,000 in new‑money bonds. The schedule presented would put the sale in early January with closing in February 2026; the refunding sale was planned for an October timeframe with a November close if market conditions held.
Why it matters: Approving the GMP lets staff move forward with renovations paid from the 2023 bond authorization and the general fund allocation for athletics. The refunding decision is intended to capture market‑driven interest savings and reduce long‑term interest costs for taxpayers.
Votes and next steps: The GMP amendment passed 7–0; both the new‑money bond parameter order and the refunding authorization passed 7–0. Staff will complete the Permanent School Fund guarantee application, finalize offering documents and proceed to market according to the schedule presented by the district’s financial advisor.
