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Waxahachie ISD board OKs order to pursue refunding bonds, delegates issuance authority to administration
Summary
Trustees approved an order delegating authority to district administration to pursue refunding certain outstanding bonds if market conditions and legal parameters yield at least 3% present-value savings; the district's financial advisor outlined timing tied to a February 2026 optional call date.
The Waxahachie Independent School District Board of Trustees voted 6-0 to approve an order authorizing the issuance of refunding bonds and delegating to district administration the authority to execute a refunding if specified parameters are met.
District financial advisor Doug Witt of Samco Capital briefed the board on a potential refinancing opportunity tied to bonds that have optional redemption dates in February 2026. Witt told trustees the district is not issuing new bonds; rather, the district is reviewing outstanding series to identify callable maturities that could be refunded within a legally permitted window. “Weare not here tonight to issue new bonds,” he said, and explained that federal tax rules allow refinancing only within 90 days of the 2026 call date for certain issues.
Witt described the districts authorized but unissued voted bond capacity—about $74 million remaining from the election, split roughly $42 million for Proposition A and $32 million for Proposition B—and identified portions of 2015 and 2016 series as candidates for refunding. He said an early conservative analysis targeted roughly $21 million of prior bonds as likely candidates and that the order would allow staff to "surgically remove maturities" on the day the district enters the market if that produces savings.
The presentation noted that the 2016 series has a key optional redemption call date in February 2026; federal tax timing makes the district eligible to refinance only in the 90-day window before that date. Witt said the district was targeting a minimum present-value savings threshold of 3 percent in the order and that the districts early analysis suggested savings at or above a roughly 4 percent present-value level, which he characterized as meaning "about $1.4 million in savings" under then-current market assumptions. He cautioned that final decisions will depend on market conditions on the day the district sells bonds.
Witt described the expected schedule: investor disclosures the week of Dec. 1, with flexibility to enter the market in December or as late as Jan. 15 and still close by a Feb. 15 redemption date. After the presentation, Mister Scofield moved to approve the order; Mister Pitts seconded and the board recorded the motion as carrying 6-0.
No alternative motions or amendments were recorded.
