Board hears plan to sell $6M in technology bonds and take small refundings now
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Summary
Financial advisor recommended combining a $6 million technology bond issuance with two small callable refundings (2015/2016 series) to capture current market savings and preserve capacity to consider larger 2017-series refunding later this summer.
Belton ISD's financial advisor briefed trustees on Feb. 2 about timing and structure options for a potential bond sale that would fund voter-approved technology projects and capture savings from callable older series.
Jennifer Ritter recommended the district move forward with a combined issuance that would include $6 million of new-money technology bonds and two smaller currently callable refundings (2015 and 2016 series). She said market movement over the prior days had pushed short-term rates down and that combining the small refundings with the new-money sale could share issuance costs and lock in savings now while keeping the larger 2017 series available for a separate summer refinancing if market conditions are favorable.
Ritter explained the plan would not extend original maturities; each refunded maturity would keep its original final payoff date. She said the board would see underwriting bids at the Feb. 25 meeting and, if satisfied with market pricing, could close and receive funds in late March.
Why it matters: Combining refundings with new-money sale is a common strategy to lower borrowing costs and reduce issuance expenses. Trustees asked clarifying questions about amortization and the treatment of cost-of-issuance; Ritter confirmed costs would be minimal by combining the issues.
Next steps: The board received the briefing and will revisit the matter at the Feb. 25 meeting when underwriting bids and final market numbers are available.