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Comal ISD board authorizes parameters for up to $210.6M bond refunding, projects ~$18M savings
Summary
The Comal ISD board approved a parameter order authorizing refunding of callable bonds with a potential present-value savings currently estimated at about 6%, representing roughly $18 million in debt-service savings across the refunded issues.
The Comal Independent School District Board of Trustees voted Thursday to authorize a parameter order to issue refunding bonds for callable portions of the districts outstanding issues, with a maximum issue size set at $210,600,000.
The measure, presented by district financial advisers and staff, allows the district to refinance bonds callable on Feb. 1, 2026, within a 90-day window after that eligibility date. The administration said current projections show approximately $18,000,000 in total debt-service savings, about $1 million per year, and an effective interest rate around 3.66 percent compared with an average 4.67 percent on the refunded bonds.
Debt-service savings from refundings reduce interest payments and increase future bond capacity, the districts advisers said. Samco Capital Marketsrepresentative explained the refunding would not exceed an amortization date of Feb. 1, 2042, and an interest-rate cap of 5.5 percent, with a minimum present-value savings parameter set at 3 percent; current modeling showed about 6 percent present-value savings.
Board discussion emphasized taxpayer benefits and preserving capacity amid rapid enrollment growth. Trustee Russ Garner praised the finance team and external advisers for pursuing savings that help hold interest-and-sinking (I&S) tax rates steady despite district growth.
The motion to approve the order passed unanimously, 7-0.
District counsel and bond counsel were present and said the district expects to apply for a permanent school fund guarantee for the refunding. Officials cautioned that market conditions could change the final savings figure before pricing.
The board did not set a final sale date at the meeting; the motion authorized staff and legal counsel to proceed under the approved parameters.
