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Ector CISD board approves parameters to sell up to $128 million in remaining 2023 bond funds
Summary
The Ector County ISD board adopted an order authorizing up to $128,033,000 in unlimited tax school building bonds to finish projects approved by voters in the Nov. 7, 2023 bond election; district officials said the sale will close in August to qualify for new state hold‑harmless funding.
The Ector County Independent School District Board of Trustees on Aug. 12 approved a parameters order authorizing the sale of up to $128,033,000 in unlimited tax school building bonds from the district's 2023 bond authorization.
District officials said the board will issue the remaining bonds this month and try to close before Sept. 1 so the bonds qualify for a state “hold‑harmless” funding provision under recent legislation. Staff and the district’s financial advisers told trustees the sale can be structured so there will be no increase in the district’s total tax rate.
The board vote followed a presentation from the district’s financial advisers outlining the financing plan and timeline. The advisers described a plan to amortize the new bonds over 19 years, keep variable‑rate debt limited to about 25% of the portfolio, and market the bonds to capture state funding tied to Senate Bill 4 if the sale closes before Sept. 1. The advisers projected an interest‑rate scenario around 4.44% and estimated net bond payments of roughly $189 million over the life of the bonds; they also said selling before Sept. 1 would qualify the district for approximately $6.7 million in additional state funds tied to the new law.
Trustees asked about timing and market demand; the district?s advisers said several Texas school issuers have brought deals in recent weeks and that the permanent school fund guarantee gives the district a triple‑A credit treatment for these sales. The agenda item asked the board to approve a parameters order that would: cap the sale at $128,033,000; limit all‑in interest cost to no more than 5%; set final maturity no later than August 2044; and authorize district officers to execute the bond purchase and paying agent/registrar agreements and related documents.
A motion to adopt the order was made and seconded; the board approved the order by voice vote.
District leaders said construction funding from the sale would complete projects approved by voters in the Nov. 7, 2023 bond election. Trustees and staff also discussed long‑term debt management strategies the district uses, including refundings and prepayments, and noted the district has historically used similar tools to reduce taxpayer costs.
Looking ahead, officials said the district intends to price the bonds later in the week and close on or about Aug. 27 to meet the Sept. 1 deadline in state law. The adviser told trustees that after this sale, no bonds will remain from the 2023 program and any future projects would require a separate bond program.
Votes at a glance: the board approved the parameters order authorizing up to $128,033,000 in unlimited tax school building bonds; the motion passed by voice vote.
