Bastrop ISD authorizes parameters to sell remaining 2023 bond authorization

Bastrop Independent School District trustees on June 17 approved an order authorizing administration to proceed with the sale of the remaining $89.4 million from the 2023 voter-approved bond authorization under specified parameters.

Josh McLaughlin of BOK Financial Securities told the board the district can sell the remaining authorization using fixed-rate offerings and still maintain the district—s interest-and-sinking (I&S) tax rate at 40.1 cents. McLaughlin outlined the financing plan, explaining the district would target an all-in interest rate assumption in the mid-to-high 4% range (the presentation used a market assumption near 4.93%) and set parameters that cap the interest rate at 5.5% with a final maturity no later than Feb. 15, 2053.

McLaughlin also highlighted a potential state hold-harmless benefit tied to timely issuance: "If we sell and close by September 1, this series will qualify for additional state funding assistance," he said, and staff estimated that assistance at roughly $6,970,000 spread over the life of the bonds.

The parameters order gives district administration up to one year to sell the series but states the district will seek to close the sale in August to secure the state assistance. McLaughlin said the district would use a portion of INS fund balance to subsidize the tax rate in 2025—26 if necessary and that selling under the parameters would keep the long-term I&S tax rate stable and preserve future bond capacity.

After questions about timing and state payments, a trustee moved to adopt the order authorizing issuance; the board approved the motion by voice vote.