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Bastrop ISD authorizes sale of remaining $89.4 million in 2023 bond program; district expects no I&S tax-rate increase
Summary
Trustees adopted a parameters order authorizing the district to sell up to $89,399,000 of the remaining 2023 voter-approved bonds, aiming to close in August to qualify for additional state hold‑harmless funding. Financial advisor BOK Securities outlined timing, assumed interest rates and use of reserves.
The Bastrop Independent School District Board of Trustees on June 17 approved an order authorizing the sale of up to $89,399,000 of remaining authorization from the district’s 2023 bond program.
Josh McLaughlin of BOK Financial Securities presented the financing plan and timetable. McLaughlin said the district sold a prior series totaling $232 million in 2023 and this authorization would sell the remaining roughly $89.4 million. He told trustees the district can sell the bonds and remain within the district’s existing interest-and-sinking (I&S) tax rate of $0.401, so bond sales would not raise that tax rate. McLaughlin recommended an August sale and August 27 closing to capture additional state “hold‑harmless” funds under recent legislation (Senate Bill 4) and estimated about $6.97 million in state assistance over the life of the issue if the series closes by the September deadline.
Key financing details presented: - Proposed par amount: up to $89,399,000 remaining from 2023 authorization. - Proposed sale and close timetable: prepare documents in July, sell in August, targeted close August 27 (to qualify for hold‑harmless funding). McLaughlin said the district would seek the Permanent School Fund guarantee and bond ratings in advance of sale. - Interest-rate assumptions: McLaughlin used a working all‑in rate estimate of about 4.93% (and set a maximum parameter ceiling of 5.5%). - Debt term and structure: amortization over a 28‑year repayment schedule with final maturity not to exceed Feb. 15, 2053; short‑lived items financed over useful life. - Use of fund balance: staff proposed using roughly $3.6 million of I&S fund balance in 2025–26 to smooth tax-rate effects in the near term.
McLaughlin pointed to strong recent new‑construction growth in the district and said the district’s tax base composition (large single‑family and vacant-lot components) supports future capacity while cautioning that the proposed plan used conservative value growth assumptions. He estimated an all‑in interest rate below 5% and reiterated the goal of preserving future capacity by actively managing the debt portfolio through refundings or prepayments as market conditions allow.
After discussion the board moved to adopt the parameters order authorizing issuance of bonds under the presented limits; the motion was seconded and approved by voice vote with no roll-call recorded. The order authorized district staff to proceed with preparing required documents and seeking ratings and the PSF guarantee under the stated parameters.
