Denton ISD officials outline plan to sell remaining 2023 bonds without raising debt tax rate

DENTON, Texas — Denton ISD officials and the district’s financial advisor told the Board of Trustees on April 22 that the district can issue the roughly $382 million left from the 2023 bond authorization without raising the I&S (interest and sinking) tax rate above the current $0.48.

At a workshop, district finance staff reviewed debt-service cash flows and fund balances and Josh McLaughlin of BOK Financial outlined a parameters plan that would split the remaining authorization into about $182 million of fixed-rate bonds and roughly $200 million in variable-rate bonds, with no increase to the district’s $0.48 debt-service tax rate.

The plan would preserve capacity for future bond elections while managing near-term payments, McLaughlin said. He estimated the proposed mix could save the district about $5.7 million in initial interest cost under current market assumptions; he also noted market rates are volatile and built a cushion into the assumptions.

Why it matters: The district must have cash in its debt-service fund to make bond payments in mid-August, a period when most property-tax collections are not yet posted. Finance staff told the board the debt-service fund balance is projected to end the 2024–25 fiscal year at roughly $145.5 million, and district officials stressed maintaining…