Burleson ISD board authorizes bond refunding, early redemption to reduce interest costs
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Summary
After a presentation from its financial adviser, the board approved an order to pursue refunding roughly $83 million of outstanding bonds and a separate resolution to redeem a Series 2016 maturity early, with projected interest-cost savings cited at about $6 million (present value).
The Burleson Independent School District Board of Trustees on Oct. 27 voted to authorize a refunding of outstanding voter-approved bonds and to allow early redemption of a separate Series 2016 maturity, actions the district's financial adviser said would reduce the district's interest-carrying costs.
Doug Witt, the district's financial adviser with Samco, told the board the refunding analysis covered about $83 million of bonds and produced roughly $6 million in total debt-service savings on a present-value basis. He also identified about $19 million of bond principal with a Feb. 2026 call date that the district could simply pay off rather than refund, which he said would yield an additional savings estimate of roughly $8 million on those maturities.
Witt described the timing constraints under federal tax law that govern refundings and said the district expects to enter the market in early December and close in December to meet the 90-day window ahead of the February call date. He said the district would use a minimum present-value savings threshold of about 3 percent as a parameter for proceeding.
Brenda Mize, the district's finance officer, coordinated the administration's work on the plan. After the presentation the board voted to: (1) adopt an order authorizing issuance of refunding bonds and delegating administration authority to complete the refunding and take necessary actions; and (2) adopt a resolution authorizing the early redemption of the Series 2016 bonds.
Both motions were approved by voice vote with no oppositions recorded. The board did not provide a roll-call tally in the public record for either vote.
The board and administration framed the actions as continuation of multi-year active debt management; Witt said past refundings and early redemptions have decreased the district's interest costs by tens of millions of dollars over recent years.
The district will return to the board for any necessary procedural disclosures and to report final terms once the transactions are executed.