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Board approves intent to issue up to $31.75 million in bonds, including $17.68M for facility maintenance
Summary
Trustees approved a resolution to pursue a competitive sale on April 13 for combined facilities maintenance and refunding bonds (approx. $31.75M total). Consultants projected a ~3% true interest cost and about $155,000 in gross refunding savings; the board also reapproved the 10‑year LTFM plan.
The School Board of Independent School District 624 approved a resolution stating the district’s intent to issue general obligation bonds totaling up to about $31,750,000 to fund long‑term facility maintenance and to refund a prior 2018 issue.
District staff and municipal advisor Shelby McQueen of Ehlers Inc. told the board the issuance will combine roughly $17.68 million for facilities maintenance with about $14.07 million to refund outstanding 2018 bonds. McQueen said the competitive sale scheduled for April 13 is expected to yield a true interest cost a little over 3 percent and estimated gross savings from the refunding of about $155,000 over the refunded bonds’ remaining term; present‑value savings were cited in the discussion at about $134,000.
Why it matters: staff and the advisor said combining the refunding with the maintenance issuance reduces issuance costs and times the refunding to capture interest‑rate savings before the refunded bonds’ call date (Feb. 1, 2026). Board members raised questions about how enrollment and financial trends affect credit ratings; McQueen explained the district’s underlying rating and how the state’s credit‑enhancement program can produce a AAA insured rating for this issue.
Formal actions and votes: the board reapproved the district’s 10‑year Long Term Facilities Maintenance (LTFM) plan and then approved a resolution of intent to issue the series 2026A bonds, with the roll‑call vote recorded as ayes from Scar, Streiffoji, Thompson, Arcand, Beloyed, Daniels and Ellison (motion carries). Staff noted the refunding portion applies to 2018 bonds and that some project‑level details for LTFM will be provided in July by facility.
What to watch next: the board will return in operational action to adopt final authorization and sale documents. Staff said the district will provide a by‑facility breakdown of LTFM projects in its July update and monitor whether market conditions meaningfully shift ahead of sale.
