Temple ISD authorizes parameters to issue bonds and refinance older debt

Temple Independent School District trustees on April 13 authorized parameters that give district officials the flexibility to issue up to half of the voter-approved bond authorization when market conditions are favorable and to refund eligible portions of outstanding debt.

Financial adviser Jennifer Pritter of Special Public Finance and bond counsel outlined a timeline and the market context: waiting for preliminary appraisal values scheduled for April 30, then pricing the bonds (ideally) on May 7 and closing in early June. The board's action sets a cap equal to the full voter authorization but staff said the district intends to sell roughly $60 million of new money in this first sale and refund about $24 million of callable 2018 bonds.

Pritter said packaging the refunding with new-money sales can save issuance costs and, with current estimates, would reduce interest costs by about $300,000 annually, for an estimated total savings of roughly $2.4 million over the life of the refunded debt if interest rates remain favorable. Staff emphasized the plan is to split the authorization and proceed conservatively to limit tax-rate impact: modeling and an upfront contribution would aim to keep the tax rate flat on the first sale.

The board approved a resolution delegating pricing authority to district officials (pricing officer, superintendent and chief financial officer under the assistant superintendent of finance) within specified parameters, including a maximum interest cap (not to exceed 6%) and a requirement that any refunding achieve at least a 2% present-value savings. Trustees discussed growth assumptions and the option to sell remaining authorization later depending on appraisal values and market conditions.

The authorization does not obligate the district to sell the full amount; staff said it provides flexibility to act quickly when market conditions are most favorable for taxpayers.