Prosper ISD board approves remarketing of 2022 adjustable-rate bonds and authorizes $300 million bond sale

The Prosper Independent School District Board of Trustees on April 22 approved two financing steps intended to keep the district’s construction program funded. Trustees unanimously authorized the remarketing of the district’s adjustable-rate school building bonds series 2022 and approved an order authorizing the issuance of up to $300 million in unlimited-tax bonds tied to the February 2025 proposition A authorization.

Finance director Mr. Witt told the board the municipal market has been volatile in recent weeks and that the district’s financing plan balances short-term adjustable-rate pieces with larger fixed-rate issuance. “We do have some volatility in our market,” Mr. Witt said as he reviewed national municipal indices and local bond-rate comparisons.

The board’s authorization delegates final pricing and document execution to district staff so the district can move on a timetable tied to market conditions. Witt told trustees the district expects to price the $300 million sale in summer and close before early July if market conditions allow. The district will use a combination of newly issued bonds and some interest-and-sinking fund balance to smooth cash flows while construction continues.

Why it matters: Prosper ISD is in an extended capital-construction period funded by previous bond programs (2019 and 2023) and the board’s action makes additional funds available for campuses and supporting infrastructure. Witt said the money could be used for new campus construction, campus additions and renovations, the administration and staff center, transportation, safety and security, and technology infrastructure.

Witt described key legal and financial constraints the district must meet before issuing bonds, including what he called the district’s requirement to “pass the 50¢ test.” That test, he said, is part of the analysis required to demonstrate the district’s ability to pay debt service within Texas law when issuing unlimited-tax bonds.

On a technical point, the board also approved remarketing of two smaller adjustable-rate bond pieces that the district had previously issued. Witt said those variable-rate pieces represent a small portion of the district’s overall portfolio and that the district intends to keep them in variable-rate mode for now, with normal reset schedules and mandatory tender dates. He noted the remarketing/reset process for the series 2022 piece follows a specific calendar that includes a mandatory tender date in mid-August.

Motion and vote: Trustee Tommy Van Wolf moved to approve the order authorizing the remarketing of the district’s adjustable-rate unlimited-tax school building bonds, series 2022; Trustee Garrett Linker seconded. The motion carried on a recorded board vote of 7–0. Trustees then moved and approved the order authorizing issuance of unlimited-tax bonds establishing sale parameters for the planned $300 million issuance; that motion also passed 7–0.

What trustees said: Several trustees thanked staff for the work and the finance committee for reviewing options before the meeting. Trustee Van Wolf moved the remarketing item, and Trustee Linker seconded; during discussion Trustee David Webb and others praised the administration and finance team for due diligence.

Timing and next steps: With board authorization, staff will continue with the plan of finance and timing will depend on market conditions. Witt said the district expects preliminary pricing work in mid‑summer and potential closing ahead of July 4, but that schedule could change if market volatility requires it. The district will also proceed with the scheduled reset/remarketing mechanics for the adjustable-rate pieces later this summer.