Lewisville ISD board approves parameters to sell next tranche of 2023 bonds amid legislative uncertainty

The Lewisville ISD Board of Trustees voted unanimously to adopt a parameter order authorizing the issuance of unlimited tax school building and refunding bonds and to appoint a pricing officer to approve sale terms, clearing the way for a planned sale of a tranche of the voter-approved 2023 bond program.

Financial staff recommended moving forward with plans to offer up to $300 million in bonds in a sale currently being targeted for May 28, with district receipt of funds anticipated in late June. During discussion trustees and staff framed the action as setting parameters for sale rather than locking in a sale date; board members emphasized there remains a final step before sale if market or legislative conditions warrant pause.

Trustees raised questions about how the planned sale would affect the district’s interest-and-sinking (I&S) tax-rate capacity. Administration and bond advisors described the sale’s projected impact on remaining I&S capacity (approximately a little over 8 cents prior to the sale) and the effect of selling the full authorization. Board members said selling the $300 million tranche would reduce available capacity and leave roughly 5-plus cents of capacity for future needs, depending on market rates. Trustees said that uncertainty in pending state legislation—bills discussed in the meeting included House Bill 19, Senate Bill 1024 and other proposals affecting bond issuance—made timing and scale important considerations.

Board members reiterated the district’s long-standing practice of financing with 20-year maturities and noted that state-level changes limiting term length or issuing conditions could increase taxpayer costs. The board approved the parameter order and the recommended underwriting team as presented and recorded a unanimous vote.