Goose Creek CISD board adopts $1.07 tax rate and approves two bond refundings to lower interest costs

The Goose Creek Consolidated Independent School District Board of Trustees on Oct. 6 approved a proposed property tax rate of $1.07 per $100 of assessed value for fiscal 2025‑26 and authorized two refunding bond issues intended to lower the district’s interest costs.

Bridget Clark, the district’s chief financial officer, presented the proposal and explained the tax‑rate components: a maintenance and operations (M&O) rate (the voter‑approved rate) proposed at 0.745 and an interest and sinking (I&S) rate of 0.325 for a total rate of $1.07. Clark said the proposed M&O rate exceeded the no‑new‑revenue rate (0.7229), which by state law requires a supermajority vote: "Section 26.05(b) of the Property Tax Code requires 5 out of 7 board members" to approve a rate above the no‑new‑revenue threshold, Clark told the board.

Clark and bond counsel and advisers presented two refunding transactions to refinance portions of outstanding Series 2015 and Series 2016 bonds at lower interest rates. Staff said the Series 2015 refunding would reduce rates from about 4.62% to about 2.79% (estimated net present savings roughly $1,287,000), and the Series 2016 portion would reduce rates from about 5.00% to about 3.17% (estimated savings about $370,000). Clark said the combined future interest carrying cost savings exceed $1.6 million.

Actions and votes taken by the board during the meeting (recorded by the clerk) included: - Consideration and approval of an order authorizing issuance of Unlimited Tax Refunding Bonds, Series 2025A (motion by Mr. Klim; second by Mr. Martinez). The board chair called the vote and recorded the motion as passing by voice vote with all trustees in favor. - Consideration and approval of an order authorizing issuance of Unlimited Tax Refunding Bonds, Series 2025B (motion by Mr. Martinez; second by Mr. Clem). The motion passed unanimously by voice vote. - Consideration and approval of a resolution levying the district ad valorem tax rate at $1.07 (motion by Mr. Clem; second by Mr. Martinez). Clark emphasized that if the board had not approved a rate above the no‑new‑revenue rate a special meeting would have been required and the district could have defaulted to the lower statutory rate, increasing the projected budget deficit by an estimated $3.5 million.

Diana Martinez of Andrews Kurth Hollis, serving as bond counsel, and Josh McLaughlin of BOK Financial Securities participated in the presentation as counsel and financial advisor. McLaughlin told trustees the refundings were structured with parameters that must be met for settlement: minimum net savings thresholds, maximum interest rate caps and final maturity not to extend beyond the existing maturity dates.

All three action items described above were approved by the board in the Oct. 6 meeting; the board recorded unanimous support for the tax rate and the refunding authorizations during roll calls. The board also approved a financial advisory services agreement with BOK Financial Securities.

Trustees did not request additional public hearings beyond the statutorily required notices; the items moved forward as administration recommended.