Wichita Falls ISD discusses refunding 2015 bonds; potential savings estimated around $2.4 million

Wichita Falls Independent School District staff and the district’s financial advisor discussed a proposed refinancing of the district’s Series 2015 unlimited tax refunding bonds and Series 2015A unlimited tax school building bonds during the special board meeting. The bonds become callable on Feb. 15, 2025; staff described a refinancing plan that would be executed after that date if market conditions are favorable.

The presentation—led by a financial advisor who identified refinancing mechanics and timelines—said the current outstanding principal balance on the 2015 series is about $47,170,000; the advisor noted that approximately $40,730,000 of that total is expected to be economically feasible to refund. Based on current market assumptions, the advisor estimated a blended borrowing cost near 3.6 percent and an approximate net present value savings in the range of $2,350,000–$2,800,000, depending on which maturities are refunded and prevailing rates at pricing. The advisor described sensitivity scenarios: a 25‑basis‑point increase in rates would reduce projected savings to roughly $1.9 million; other scenarios declined savings further if some bonds are not refunded because they already have low coupons.

Staff explained the likely schedule if the board authorizes parameters: a parameters resolution would be considered at the next regular board meeting (cited as the 21st in the presentation), a rating call and an application for Permanent School Fund (PSF) insurance to secure a AAA credit enhancement would follow, and pricing could occur in early March with closing shortly thereafter. Staff said this would be a negotiated sale and the district could delay pricing if market conditions worsen.

Board members asked questions about the underwriter discount (noted in the materials as $6 per bond) and about how debt service savings would affect the district’s interest and tax rate in the I&S (interest and sinking) tax rate. Staff explained that any savings would reduce the amount needed in the debt service fund (Fund 599) and that savings would be reflected when the district develops tax rates later in the year. The superintendent said any decision on refunding would be brought to the board for formal authorization of parameters and that an adoption vote would appear on a future agenda.

No final refunding resolution was adopted at the meeting; the board was given the information and indicated staff should bring a parameters resolution for consideration at the next meeting.