La Porte ISD board OKs bond sale authorization amid uncertainty over state rules

La Porte Independent School District trustees on Tuesday adopted an order authorizing the issuance of the district’s Unlimited Tax School Building Bond Series 2025 and delegated authority to district staff to complete the sale, a move intended to put bond proceeds into the construction fund this summer.

The order, presented by the district’s financial adviser and adopted unanimously, authorizes a pricing officer to approve the final award and sale under parameters set by the board. The adviser said the district plans to issue about $39.35 million of Proposition A bonds and $3 million of Proposition B bonds now, leaving up to the full $69 million authorized in the bond election available if adjustments are needed.

The bond sale matters because it will fund ongoing facility projects — including stadium and legacy complex work and high school renovations — and because the district must balance market timing against a pending piece of legislation the adviser said could alter how excess interest-and-sinking (I&S) tax revenues affect state hold-harmless payments.

Doug, the financial adviser from Samco who presented the plan of finance, summarized current market conditions and the district’s options, noting both credit strengths and market volatility. He told trustees that La Porte ISD benefits from a strong tax base and high credit ratings and said the district’s plan is to structure short-term technology amortization separately from longer-term facility bonds.

"We won't try to perfectly time the market, but we will try to make some wise decisions within the context of that atmosphere," Doug said, referring to short-term interest-rate gyrations affecting municipal markets.

Key details presented by the financial adviser and bond counsel during the meeting: - Planned issuance: roughly $39.35 million from Proposition A and $3 million from Proposition B; Proposition C had been used for prior projects and is not part of this planned issuance. - Pricing assumptions: preliminary conservative interest rate of about 4.75% for planning purposes; negotiated sale with a 20-year amortization and a 10-year prepayment option was proposed. - Schedule: board adopted parameters April 8; the district intends to sell bonds in early June and close in July so funds arrive for construction, but final timing may be adjusted pending certified property values and state policy clarifications. - Risk and trade-offs: the adviser's team warned that recent market volatility and proposed state legislative changes could reduce the district’s ability to bank excess I&S tax receipts for early principal retirement. The adviser said that decision-making will weigh the risk of higher interest costs and a summer market logjam against possible changes to hold-harmless treatment.

Bond counsel Diana Martinez (Andrews, Perth/Tom Sage’s group) explained the order authorizes issuance up to the district’s remaining authorized amount while the district intends a smaller initial series, giving administrators flexibility if certified values or market conditions change before sale.

Board members asked several clarifying questions about timing, reserves and the hold-harmless concern. The financial adviser described the district’s historical use of early refundings and the benefit of having a reserve to smooth debt service over the long term.

Trustees moved and seconded the order and voted unanimously to adopt it. The board president announced the motion was carried unanimously; the meeting record shows the vote as unanimous. The order delegates final award and pricing to an appointed pricing officer and allows the administration to proceed with the sale within the board’s parameters.

The board will revisit the exact timing and final structure as preliminary and then certified property values become available and as the district seeks clarification from the Texas Education Agency about the state’s interpretation of pending legislation.

Votes at a glance: - Motion: "That the board of trustees adopt the order authorizing the issuance of the La Porte Independent School District Unlimited Tax School Building Bond Series 2025 as presented before the trustees this evening." — Mover: not specified in the audio; Second: not specified in the audio. Outcome: approved (unanimous).