Board authorizes up to $25 million school building bonds, delegates pricing to district officers

The Corsicana Independent School District Board of Trustees on Feb. 23 approved an order authorizing the issuance and sale of up to $25 million in unlimited-tax school building bonds, series 2026, and delegated final pricing authority to district pricing officers.

Jeff Robert of Hilltop Securities told trustees the district proposes a parameter bond order that would set maximums (principal, interest-rate ceiling and pricing-window limits) while allowing district officers to finalize sale terms if the parameters are met. Robert presented market context using the 20-year bond buyer index, noting recent weekly movements and a conservative near-term interest-rate assumption of 4.7 percent (he said actual pricing may be closer to 4.5 percent).

Robert explained the district’s tax-base growth assumptions used for projections — 0 percent for the next year, then 1 percent annually for four years, 0.5 percent in year five and 0.25 percent thereafter — and why the first-year tax-rate estimate is higher (about $0.50 per $100 of assessed value) because the initial debt-service year covers roughly 15 months. He described the proposed financing as a 30-year maturity with a delegation expiration of 180 days.

On mechanics, Robert said typical school bonds include a 10-year call provision; the district can defease bonds early by placing money in an interest-bearing escrow but that option may be uneconomical if escrow yields lag the bond coupon. He also thanked district staff, underwriters and rating-agency contacts for preparation ahead of pricing.

A trustee moved to adopt the order authorizing issuance and sale of the bonds; after a second, the board voted in favor and the motion passed. The order authorizes the district to market the bonds within the stated parameters; final pricing and sale will be completed by the designated pricing officers if the terms are met.