Sheldon ISD advisers lay out $59.2M bond sale and short refunding to protect state aid

Sheldon ISD financial advisers presented parameters for the district—s remaining 2022 bond program and a small refunding transaction aimed at preserving state aid calculations.

Louis Wilkes of US Capital Advisors told the board the district had $247.7 million authorized in 2022, with roughly $98.5 million sold in 2023 and $90 million in 2024, leaving about $59.2 million for the planned sale. He walked the board through a timetable: board approval in two weeks, bid taking in early March and funding expected April 2. "Then you would have funding, on April 2," Wilkes said.

Advisers also proposed a short refunding of roughly $11,170,000 to avoid reducing the district—s state-assistance calculations; adviser speaker (identified in materials as Mr. Sage) described the refunding as a two-month maturity intended to preserve future ASI (state aid) amounts rather than prepaying debt with cash. The presenters said the combination of refunding and careful pricing should allow the district to remain under the 50-cent tax-rate cap (the presentation cited a peak scenario of 49.94 cents).

Board members asked about projected interest rates and the mechanics of the short refunding; advisers estimated borrowing costs in the mid‑4 percent range and said the refunding transaction would likely not require attorney-general approval because of its short maturity. The item was informational and will return as an action item at the next meeting for formal approval of sale parameters.

Funding source and timing: if approved, the sale proceeds would provide the listed capital projects and related costs; the refunding is structured to retain ASI payments in the district—s favor.