MEDINA VALLEY ISD hears updated bond and budget scenarios as preliminary values rise; board warned of legislative timing risks

District staff and the district’s financial adviser told the MEDINA VALLEY ISD Board of Trustees on May 14 that preliminary property values are higher than budget assumptions and that the district can likely proceed with previously outlined bond sales — with choices to accelerate funding if the board favors that path. Board members pressed staff on the timing, pledge levels and legislative risks that could change how much the district can issue or when.

Miss Hermit (district finance staff) and Victor Quiroga, the district’s financial adviser from Specialized Public Finance, presented updated models using preliminary valuations from Bexar and Medina counties. The district’s preliminary growth figures were reported in the range of about 11.26% to 11.68% on combined preliminary values; staff and advisers said a $50 million additional value from Medina County could push modeled growth toward 12%.

That growth matters because it affects the district’s I&S (interest and sinking) and M&O (maintenance and operations) capacity and therefore how much bond principal the district can safely sell without increasing its long-term reliance on “tier 1” funds (district M&O funds pledged to support debt service). The board discussed three core elements: the defeasance strategy already in motion, a planned $70 million bond sale this summer, and an accelerated option (labeled scenario 1b) that would raise roughly $132 million this summer but require a substantially larger tier 1 pledge.

Key figures presented on the record - Defeasance strategy: staff said the district planned a two-part defeasance…