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Midway ISD board authorizes $83.5 million bond issuance, outlines financing plan
Summary
The Midway ISD Board of Trustees unanimously approved a bond order authorizing up to $83.5 million in unlimited tax school building bonds and delegated execution authority to district staff; advisers said the district will target a 20‑year repayment and enter the market in early 2026 without an NS‑side tax‑rate increase.
The Midway ISD Board of Trustees unanimously approved an order authorizing the issuance of up to $83,500,000 in unlimited tax school building bonds and delegated authority to district staff to finalize related documents.
Victor Quiroga of Specialized Public Finance told trustees the district’s financing plan aims to issue the full authorization in early 2026, target a 20‑year repayment term and obtain a fixed interest rate through a negotiated sale. Quiroga said the district has roughly $146,150,000 in outstanding principal across six prior issuances and noted recent defeasances and early principal payoffs that saved taxpayers money: “we’ve saved about $11,600,000 of taxpayer money through these defeasances and refinancings,” he said, and the district has paid about $14,000,000 in principal early since 2019.
Quiroga said the district received preapproval for the state’s Permanent School Fund guarantee and that major rating agencies have rated the district highly, helping secure favorable long‑term rates. He cautioned that long‑term rates are uncertain but said the team’s goal is to be well below the conservative 6 percent example shown in the presentation.
Trustees pressed on timing and tax impact. A trustee asked whether the proposition language that appears on ballots as a tax increase actually means the district will raise taxes. Quiroga and staff replied that the plan is to finance the program without an NS‑side tax‑rate increase and that final interest rates will be set when the district locks the sale in the market, expected to occur in late February with a closing in March 2026.
The board voted to adopt the bond order by unanimous voice vote, delegating authority to the superintendent or chief financial officer to sign final sale documents within the parameter limits established by the order. The approval allows the district to proceed to market and deliver bond proceeds for projects approved by voters.
What’s next: district staff and advisers will finalize sale parameters and bring back any required administrative documents; trustees were told the authorization has a 12‑month shelf life if the market timing needs adjustment.
