Eunice board approves first $10 million tranche of voter-approved $35 million bonds, adviser says

The Eunice Municipal Schools board on Monday approved a resolution to issue an initial tranche of bonds the district’s voters authorized in the last election.

Brad Angs, the district’s bond adviser from Stifel Public Finance, told the board voters had approved $35,000,000 in bonds and that the district would issue $10,000,000 now to meet near-term needs while saving on interest costs compared with issuing the full amount at once. “Voters approved, $35,000,000 of bonds at the last election. We’re here to do the first issuance. We recommended $10,000,000 for this time,” Angs said.

Angs told the board the issuance should not require a tax increase and cited a debt-service mill-levy figure of about 1.7, saying fast prepayments of prior debt had left room to layer the new issuance without an increase. He also described current tax-exempt municipal bond rates in the roughly 3–4% range and said the district aimed to lock interest rates in early April and close in May after attorney-general sign-off. “So, we’re moving towards locking in interest rates in early April. Then we’ll close and provide funding in May after we go through the AGs, sign off,” Angs said.

Board members asked a few clarifying questions and then moved to approve the bond matter. The motion was made and seconded and the board took the recommended action.

Why it matters: Issuing a portion of the voter-approved bonds now can lower long-term interest costs for the district while supplying funds for planned capital work. The board’s action begins the formal issuance process; the district’s next steps include finalizing the interest-rate lock and legal sign-offs before closing.

Provenance: Presentation and Q&A by bond adviser Brad Angs (SEG 177–SEG 234); approval motion and board assent (SEG 254–SEG 286).

Speakers quoted: Brad Angs, bond adviser, Stifel Public Finance (as identified in the meeting).