TSSBA presents fiscal-year-end debt report: $1.82 billion outstanding; sinking fund near balances for QSCBs

Tennessee State School Bond Authority staff on July 21 presented the authority’s fiscal-year-end debt report showing $1,818,700,000 in higher-education bonds outstanding and a total of $59,727,000 outstanding under the authority’s revolving credit facility.

Sandy Thompson, TSSBA staff, outlined the balances: taxable bonds outstanding of $866,055,000 and tax-exempt bonds outstanding of $952,645,000 for a combined $1,818,700,000. The authority also has a revolving credit facility with $41,829,000 outstanding for taxable borrowings and $17,897,615 outstanding for tax-exempt borrowings, for a combined $59,727,000 outstanding under that facility.

Thompson also reported on the Qualified School Construction Bond (QSCB) program series: $177,000,000 outstanding from the 2009 series and $212,440,000 outstanding from the 2010 series, a combined $389,440,000. She said the authority has built a sinking fund balance of $375,611,000, which staff and Treasury analyze annually to ensure sufficiency to meet maturities when they come due.

Thompson noted the QSCB maturities are near: the 2009 series matures in 2026 and the 2010 series matures in 2027. Thompson told members Treasury staff regularly analyzes the sinking fund and that, at present, staff are comfortable that the sinking fund will be sufficient to pay the QSCB balances at maturity.

Commissioner Bryson asked how current outstanding debt compares to historical levels. Thompson said staff can prepare a multiyear comparison for the member. The chair acknowledged the report; no formal board action was taken beyond acknowledging the report.

Why it matters: The report summarizes the authority’s current leverage and the status of dedicated sinking funds for older QSCB issues that mature in the next two years. Members requested a short historical comparison of outstanding bonds over recent years.